An Employee Earned $4,600 in February Working for an Employer

question 179

Multiple Choice

An employee earned $4,600 in February working for an employer.Cumulative earnings of the previous pay periods are $4,800.The FICA tax rate for Social Security is 6.2% of the first $128,400 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.What is the amount the employer should record as payroll taxes expense for the month of February?

• A)$581.90
• B)$110.00
• C)$351.90
• D)$483.90
• E)$230.00

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Definitions:

Minimum Reading

The lowest value or measurement that can be accurately read or determined by a given instrument or method.

Universal Motor

An electric motor that can operate on either AC or DC power, commonly found in household appliances.

Wound Armature

An armature with coils wound around its laminated core, typically part of an electric machine, that interacts with the magnetic field to generate motion or electricity.

Compensating Winding

A winding used in electrical machines to reduce unwanted effects of armature reaction, improving performance.