Question

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,388. The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. 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 $1,391.77. What is the total amount of taxes withheld from the Portia's earnings

Answer 1

Answer: $‭2,033.46‬

Explanation:

Social security taxes = 8,388 * 6.2% = $‭520.06

Medicare taxes = 8,388 * 1.45% = $‭121.63

Federal income tax withheld = $1,391.77

FUTA and SUTA are to be paid by the employer not the employee.

The total amount of taxes withheld from Portia is therefore:

= 520.06 + 121.63 + 1,391.77

= $‭2,033.46‬