Gary Marks Is Paid on a Monthly Basis

question 29

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?

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

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Definitions:

Minimum Wage Jobs

Positions of employment that pay the lowest legal amount permissible by law, often requiring unskilled labor.

Growth of Imports

The increase in the volume or value of goods and services brought into one country from another over a specific period.

Unskilled Laborers

Workers who perform tasks that require minimal specialized training or education.

Unemployment

A situation where an individual who is capable of working and is actively seeking work is unable to find employment.