Question

​Jack's gross pay for the week is . His yeartodate pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is ​% and that​ Jack's yeartodate pay has previously exceeded the cap. What is the total amount of payroll taxes that​ Jack's employer must record as payroll tax​ expenses? (Do not round your intermediate calculations. Assume a FICAOASDI Tax of ​% and FICAMedicare Tax of ​%.)

Answer 1

Answer: $122.40

Explanation:

Jack's year to date pay has already exceeded the $7,000 limit on which State and Federal Unemployment taxes can be charged on his pay.

The amount the employer will pay is;

= FICA OASI Tax + FICA Medicare tax

= (1,600 * 6.2%) + (1,600 * 1.45%)

= 99.20 + 23.20

= $122.40