Question

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and medicare taxes and $120 for income taxes. the employer pays $91.80 for social security and medicare taxes, $9.60 for futa, and $64.80 for suta. the total cost of this employee to the employer is

Answer 1

Given the following parameters:

The employer pays the employee (gross earnings) – $1,200

The employer pays for social security and medicare taxes – $91.80

The employer pays for the Federal Unemployment Tax Act (FUTA) – $9.60

The employer pays for the State Unemployment Tax Act (SUTA) –  $64.80

The total cost of this employee to the employer is the summation of all these costs
1,200 + 91.80 + 9.60 + 64.80 = $1366.20