The Dehl Company payroll for the first week in January was $10,000.The amount of income tax withheld was 12 percent and the FICA,state unemployment,and federal unemployment tax rates were 8 percent,5 percent,and 1 percent,respectively.The amount of the employer's payroll taxes are:
A)$2,600.
B)$1,200.
C)$1,300.
D)$1,400.

Question

Quizplus · Accepted Answer

First, we need to calculate the total amount of payroll taxes withheld from the employee's paycheck. This includes income tax and FICA.

- Income tax withheld: 12% of $10,000 = $1,200
- FICA (Social Security and Medicare): 7.65% of $10,000 = $765

Next, we need to calculate the amount of payroll taxes that the employer must pay themselves. This includes their portion of FICA (which is equal to the employee's portion) and state/federal unemployment taxes.

- FICA (Social Security and Medicare): 7.65% of $10,000 = $765
- State unemployment tax: 5% of $10,000 = $500
- Federal unemployment tax: 1% of $10,000 = $100

Adding all of these amounts together gives us the total employer payroll taxes:

$765 + $765 + $500 + $100 = $2,130

Therefore, the best choice is D, $1,400.

The Dehl Company Payroll for the First Week in January