Question

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and medicare taxes and $120 for income taxes. the employer pays $91.80 for social security and medicare taxes, $9.60 for futa, and $64.80 for suta. the total cost of this employee to the employer is

Answer 1

1,366.20

Step-by-step explanation:

Particulars Amount

Gross payment $1,200

Social security and Medicare taxes $91.80

FUTA $9.60

SUTA $64.80

Total Cost $1,366.20

The average total cost varies from business to business. For an employer, the major amount of total cost lies in the payment of salaries or wages, the tax liability upon the employees' wages, and few operating costs of the business.

Answer 2

Given the following parameters:

The employer pays the employee (gross earnings) – $1,200

The employer pays for social security and medicare taxes – $91.80

The employer pays for the Federal Unemployment Tax Act (FUTA) – $9.60

The employer pays for the State Unemployment Tax Act (SUTA) – $64.80

The total cost of this employee to the employer is the summation of all these costs
1,200 + 91.80 + 9.60 + 64.80 = $1366.20