An employee has gross earnings of $1,600 and withholdings of $25 for income taxes, $5 for Social Security taxes, and $3 for Medicare taxes. The employer also pays a total of $5 for Social Security and $3 for Medicare taxes, $12 for FUTA, and $2 for SUI. What is the total cost of this employee to the employer?

An employee has gross earnings of $1,600 and withholdings of $25 for income taxes, $5 for Social Security taxes, and $3 for Medicare taxes. The employer also pays a total of $5 for Social Security and $3 for Medicare taxes, $12 for FUTA, and $2 for SUI. What is the total cost of this employee to the employer?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16MC: An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the...

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