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

---

Definitions:

Tariffs

Taxes imposed by a government on goods and services imported from other countries, used to restrict trade and raise government revenue.

Quotas

Numerical limits imposed on the quantity of a specific good that may be imported.

Positive Balance

A financial situation where income exceeds expenses or assets surpass liabilities, often considered a sign of financial health.

International Trade

The exchange of goods, services, and capital between countries or territories.