An Employee Has Gross Earnings of $1000 and Withholdings of $60

question 107

Multiple Choice

An employee has gross earnings of $1000 and withholdings of $60 FICA (OASDI and Medicare) ,and $50 for income taxes (FIT and SIT) .The employer pays $60 FICA (OASDI and Medicare) ,$10 for SUTA,and $5.60 FUTA.What is the employer's total cost of the employee?

• A)$915.60
• B)$1,075.60
• C)$975.60
• D)$1,035.60

Understand the basic principles of inventory costing methods such as FIFO (First In, First Out).

Grasp the implications of variable and absorption costing on financial statements and decision making.

Comprehend the effects of production and sales levels on a company’s profits under different costing methods.

Recognize the impact of fixed and variable costs in cost accounting.

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Definitions:

Monthly Depositor

A business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.

Look-Back Period

A specified time frame in the past during which relevant financial transactions or performance is reviewed or analyzed.

Payroll Tax Expense

Taxes that are incurred by an employer based on the salaries and wages of employees, including taxes like Social Security and Medicare in the United States.

FICA

The Federal Insurance Contributions Act tax is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.