R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social Security taxes at a rate of 6

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3 years ago

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R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social Security taxes at a rate of 6

.2% and Medicare taxes at a rate of 1.45% on John's salary. In addition, Ybarra must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.8% on the first $7,000 of Ince's salary. Compute the total cost to Ybarra of employing Ince for the year. Round your answer to the nearest cent.

Business

1 answer:

masya89 [10] · Answer 1 · 2022-03-07T10:04:04+03:00

Answer: $57488.50

Explanation:

The total cost to Ybarra of employing Ince for the year will be calculated thus:

Gross Salary = $53,000

Add: Social security tax = $53000 × 6.2% = $3286

Add: Medicare tax = $53000 × 1.45% = $768.50

Add: SUTA tax = $7000 × 5.4% = $378

Add: FUTA tax = $7000 × 0.8% = $56

Total cost to Ybarra of employing Ince will be $57488.50