Employers monthly payroll tax expenses


Phil Phoenix is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,838. FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,466.47. What is the amount of the employer's monthly payroll tax expenses for this employee? (Round your intermediate calculations and final answer to two decimal places.)

a) $1,110.11

b) $547.96

c) $128.15

d) $378.00

e) $56.00

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Accounting Basics: Employers monthly payroll tax expenses
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