Answer: The total payroll tax expense is $483.90.
Explanation: The total of the payroll tax expense is the amount that the employer will record for the month.
Social Security - will pay on entire amount - $4,600 x .062 = $285.20
Medicare - will pay on entire amount - $4,600 x .0145 = $66.70
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
