The payroll register of Sara Company indicates $5,800 of social security withheld and $1,450 of Medicare tax withheld on total salaries of $90,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, at the federal rate of 0.8% and the state rate of 5.4%. What is the total amount of payroll tax expense? a.$7,502b.$7,250c.$8,951d.$9,203

Question

Aldo Jennings

Business

22 June, 00:59

The payroll register of Sara Company indicates $5,800 of social security withheld and $1,450 of Medicare tax withheld on total salaries of $90,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, at the federal rate of 0.8% and the state rate of 5.4%. What is the total amount of payroll tax expense? a.$7,502b.$7,250c.$8,951d.$9,203

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Harold · Answer 1

d.$9,203

Explanation:

31,500 x 0.8% FUTA = 252

31,500 x 5.4% SUTA = 1,701

Then for medicare and social security the employeer contributes the same amount as the employees.

Employeer payroll taxes:

5,800 Social Security +

1,450 medicare +

252 FUTA +

1,701 SUTA

Total: 9,203