Question

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,488. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,325.17. What is the total amount of taxes withheld from the Portia's earnings?
A) $3,097.17.
B) $2,443.21.
C )$1,957.06.
D) $1,722.00.
E) $1,495.36.

Answer 1

Answer: $1,974.51

Explanation:

FUTA and SUTA taxes are the responsibility of the employer so the amount withheld from Portia's earnings will be;

= Social security tax  + Medicare tax  + Federal income tax withheld

= (0.062 * 8,488) + ( 0.0145 * 8,488) + 1,325.17

= 526.26 + 123.08 + 1,325.17

= $1,974.51

Option is not given but this is the answer.