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

question 86

Multiple Choice

An employee earned $62,500 during the year working for an employer.The FICA tax rate for Social Security is 6.2% of the first $127,200 of employee earnings per 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.What is the amount of total unemployment taxes the employee must pay?

• A)$42.00
• B)$56.00
• C)$378.00
• D)$420.00
• E)$0.00

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Definitions:

Just-In-Time System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, aiming to have the exact amount of material, at the right time, and the right place.

Offshore

The practice of moving some of a company's operations or services to another country to capitalize on lower costs or favorable regulations.

Strategic Consequences

The outcomes or impacts that result from the implementation of specific strategies or decisions within an organization or nation.

Enterprise Resource-Planning

A software system used by organizations to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.