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15 December, 16:32

The payroll register of Sara Company indicates $5,800 of social security withheld and $1,450 of Medicare tax withheld on total salaries of $90,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $31,500, at the federal rate of 0.8% and the state rate of 5.4%. What is the total amount of payroll tax expense? a.$7,502b.$7,250c.$8,951d.$9,203

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  1. 15 December, 16:46
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    d.$9,203

    Explanation:

    31,500 x 0.8% FUTA = 252

    31,500 x 5.4% SUTA = 1,701

    Then for medicare and social security the employeer contributes the same amount as the employees.

    Employeer payroll taxes:

    5,800 Social Security +

    1,450 medicare +

    252 FUTA +

    1,701 SUTA

    Total: 9,203
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