Gary Marks Is Paid on a Monthly Basis

question 153

Multiple Choice

Gary Marks is paid on a monthly basis.For the month of January of the current year,he earned a total of $8,288.FICA tax for Social Security is 6.2% on the first $118,500 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings.The 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 amount of Federal Income Tax withheld from his earnings was $1,375.17.What is the amount of the employer's payroll taxes expenses for this employee? (Round your intermediate calculations to two decimal places.)

• A) $2,009.21
• B) $1,131.31
• C) $2,506.48
• D) $420.00
• E) $1,054.04

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Definitions:

Authorized Transaction

A financial operation that has been approved or permitted by the relevant authorities or parties involved.

Estoppel

A legal principle that prevents someone from arguing something contrary to a claim they have previously made or accepted by their actions.

Apparent Authority

A situation where a reasonably prudent person would understand that an agent had the authority to act, even if the agent didn't have actual authority.

Purported Principal

An entity or individual represented as having granted authority to another, whether or not such authority actually exists.