Question

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,838. 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 $1,466.47. What is the total amount of taxes withheld from the Portia's earnings

Answer 1

Answer:

$2142.57

Explanation:

-The first step is to calculate the security tax and Medicare tax

If the total earning of Portia grant for the month of January is $8,838 then the security tax and FICA Medicare tax can be calculated as follows

Security tax= 6.2/100×8,838

= 0.062×8,838

= 547.95%

Medicare tax= 1.45/100×8,838

= 0.0145×8,838

= 128.15%

-The next step is to calculate the total amount of taxes

The SUTA and FUTA taxes is the amount of tax that is paid by the owner of the organization and as such they are not included in Portia's earning

If the Federal income tax withheld is $1,466.47 then, the total amount of tax withheld from Portia's earning can be calculated as follows

= 547.95+128.15+1,466.47

= $2142.57

Hence the total amount of taxes withheld from Portia's earning is $2142.57