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

question 233

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 $118,500 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:

Policyholders

Individuals or entities that own an insurance policy and are entitled to coverage under the terms of the policy.

Major Injury

A severe physical harm or damage to a person, often requiring extensive medical treatment or leading to long-term health effects.

Minor Injury

An injury that is not considered severe or life-threatening, often requiring minimal medical treatment.

Expected Number

The statistically predicted average value in a distribution or experiment.