An employee earned $4,600 in february working for an employer. cumulative earnings of the previous pay periods are $4,800. the fica tax rate for social security is 6.2% of the first $118,500 of earnings each calendar year and the fica tax rate for medicare is 1.45% of all earnings. the current 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. what is the amount the employer should record as payroll taxes expense for the month of february?

The following two taxes are only paid on the first $7,000 paid each year. It was paid on $4,800 in the previous pay period, so will only need to be paid on $2,200 this pay period in order to reach the $7,000 threshold. ($7,000 - 4,800 = 2,200)

FUTA - $2,200 x .006 = $13.20

SUTA - $2,200 x .054 = $118.80

The total amount of payroll tax expense is $285.20 + 66.70 + 13.20 + 118.80 = $483.90

aarinimishra75 aarinimishra75 · Answer 2 · 2022-07-15T12:20:54+02:00

The employer is required to report $483.90 as payroll tax expense for the month of February.

What is tax rate?

An individual or business gets taxed at a certain percentage, which is called a tax rate. An income-based tax rate that is progressive levies greater payments.

Social Security = $4,600 x .062

= $285.20

Medicare= $4,600 x .0145

= $66.70

The next two taxes are only levied on the first $7,000 of annual income. In the prior pay period, it was paid on $4,800.

$7,000 – 4,800 = 2,200

FUTA = $2,200 x .006 = $13.20

SUTA = $2,200 x .054 = $118.80

tax expense = $285.20 + 66.70 + 13.20 + 118.80 = $483.90.

As a result, $483.90 is an accurate answer.

Learn more about on tax rate, here:

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