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

question 73

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 $118,500 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)$101.50
• B)$56.00
• C)$378.00
• D)$434.00
• E)$0.00

Comprehend payroll accounting including recording salaries, withholdings, and employer payroll taxes.

Analyze warranty expenses and liabilities using different accounting methods.

Calculate bonuses based on income after bonus and tax.

Categorize current liabilities into appropriate groups and understand their nature.

---

Definitions:

Sandwich

A food item consisting of one or more types of food, such as meat, cheese, or vegetables, placed between slices of bread.

Atherosclerosis

Condition in which arteries stiffen, and the walls accumulate cholesterol and fat plaques, which reduce blood flow; a cause of heart disease.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, heart rhythm problems, and congenital heart defects.

Hostility

The expression of unfriendliness or opposition, often characterized by anger, aggression, or resentment towards others.