What is amount the employer should record as payroll taxes

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Question - An employee earns $5,850 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $132,900 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. The employee has $196 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $164 and contributes $82 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?

a. $491.53

b. $889.28

c. $447.53

d. $650.53

e. $798.53

Reference no: EM132747270

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