Chapter 9, Problem 2MC

### College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Chapter
Section

### College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

# Joyce Lee earns $30,000 a year. Her employer pays a matching Social Security tax of 6.2% on the first$128,400 in earnings, a Medicare tax of 1.45% on gross earnings, and a FUTA tax of 0.6% and a SUTA tax of 5.4%, both on the first $7,000 in earnings. What is the total cost of Joyce Lee to her employer? (a)$32,295 (b) $30,000 (c)$30,420 (d) $32,715 To determine Calculate the total cost of Person J to the employer. Explanation Payroll: Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a companyâ€™s employees. Calculate the total cost of Person J to the employer.  Particulars Amount Gross wages$30,000 Add: Employer Social Security tax ($30,000Ã—6.2%s)$1,860 Â Â Â Â Â Â Â  Employer Medicare tax (\$30,000Ã—1

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