Question

Gross Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax withheld Employee Earnings Arnett 42,000 $ 5,880 $ 630 2,520 918 Cruz 2,754 — 230 15,300 22,950 Edwards 2,873 1,327 344 7 Harvin 4,800 600 7 Nicks 66,700 15,008 → 288 4,002 222 Shiancoe 3,700 574 1,001 56 1,139 Ward 75,900 16,324 4,554 13,881 $ 3,472 ✓ 2. Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 5.4% on the first $10,000 of ca employee's comings; (d) federal unemployment compensation at 0.6% on the first $10,000 of each employee's earnings; (c) total, Note: Round amounts to the nearest whole dollar and enter all amounts as positive values 13,581 16,270

Answer 1

As per questions A and B already solved and also detail answer available in question.

C. State unemployment compensation at 5.4% on each the first 10,000 of each employees earnings

So that arnett,cruzz Edwards, Nick's and ward gross earnings exceed the limit of 10,000 and SUTA at 5.4% on 10,000 (maximum) of each employee except Harvin and Shiancoe (these two employee income Less than 10,000 so full amount taken for calculation)

Total amount =(10,000× 5) +(4800 +3700)= 58500

State unemployment compensation tax (SUTA) at 5.4% on 58500= 3159

D. Federal unemployment tax (FUTA) is 0.6% on 58500= 351

Note : SUTA and FUTA maximum limit 10,000 so that already explained in SUTA and same rules applicable in FUTA but tax rate is different.

E. Total payroll taxes = a + b+c+d= 13881+3472+3159+351

Total payroll tax= 20863