Payroll tax expense
** Please see the attached file for the complete problem description **
A company's employees had the following earnings records at the close of the current payroll period:
The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $84,900 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period.
J. Hess 2,500 $900
R. Lui 3,100
T. Morales 1,400 1,400
L. Vang 3,000
Total $13,900 $2,300
Once earnings cross $7,000 there will be no ...