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16 August, 02:15

Kristy Casey earns $39,000 per year and is paid once a month. For January, she had $188 withheld from her pay for federal income taxes, and $52 withheld for health insurance. Social Security tax is 6.2% on a maximum of $122,700 of gross wages per year, and Medicare tax is 1.45%; the federal unemployment tax rate is 0.6% and state unemployment tax rate is 4.2%. What is the total employer payroll tax expense for Kristy's January paycheck? a. $385.13

b. $162.50

c. $248.63

d. $404.63

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  1. 16 August, 03:56
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    D) $404.63

    Explanation:

    Kristy Casey's monthly salary = $39,000 / 12 = $3,250

    Her employer's payroll tax expenses for January:

    monthly salary x Social Security tax = $3,250 x 6.2% = $201.50 monthly salary x Medicare tax = $3,250 x 1.45% = $47.13 monthly salary x federal unemployment tax = $3,250 x 0.6% = $19.50 monthly salary x state unemployment tax = $3,250 x 4.2% = $136.50

    total employer payroll tax expense = $201.50 + $47.13 + $19.50 + $136.50 = $404.63
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