Question

An employee earns $6,450 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $220 in federal Income taxes withheld. The employee has voluntary deductions for health insurance of $188 and contributes $94 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?

Answer 1

Option , $880.43

Social security	399.9	[6450*6.2%]
FICA Tax rate	93.525	[6450*1.45%]
FUTA tax	38.7	[6450*0.6%]
SUTA Tax	348.3	[6450*5.4%]
Payroll taxes	880.43