An Employee Earned $62,500 During the Year Working for an Employer.The

question 79

Multiple Choice

An employee earned $62,500 during the year working for an employer.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.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.What is the amount of total unemployment taxes the employee must pay?

• A)$101.50
• B)$56.00
• C)$378.00
• D)$434.00
• E)$0.00

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Definitions:

Job Cost Sheet

An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.

Direct Labor

The wages or costs directly associated with the production of goods or the provision of services, involving labor directly involved in manufacture or service delivery.

Perpetual Inventory

An immediate inventory transaction recording method, utilizing computerized point-of-sale systems and enterprise asset management software for accounting purposes.

Subsidiary Ledgers

Detailed financial books that complement the general ledger by tracking individual accounts or categories, such as accounts payable or receivable.