An Employee Earns $5,500 Per Month Working for an Employer

question 180

Multiple Choice

An employee earns $5,500 per month working for an employer.The FICA tax rate for Social Security is 6.2% of the first $127,200 of earnings each 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.The employee has $182 in federal income taxes withheld.The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month.What is the amount the employer should record as payroll taxes expense for the employee for the month of January?

• A)$420.75
• B)$464.75
• C)$602.75
• D)$841.50
• E)$750.75

Understand how to maintain professional demeanor and confidence in application messages.

Identify the elements to include in a professional portfolio.

Recognize the differences between solicited and unsolicited application messages and their strategic approaches.

Realize the potential impact of employment videos on the job search process.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

New Bonds

Securities that have been recently issued, representing loans from investors to issuers such as corporations or governments with a commitment to pay interest and return principal at specified dates.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.