An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?
Answer (1)
Calculate the Social Security tax: 0.062 × $2 , 400 = $148.80 .
Calculate the Medicare tax: 0.0145 × $2 , 400 = $34.80 .
Calculate the FUTA tax: 0.006 × $1 , 800 = $10.80 .
Calculate the SUTA tax: 0.054 × $1 , 800 = $97.20 .
Calculate the total payroll taxes expense: $148.80 + $34.80 + $10.80 + $97.20 = $291.60 .
Explanation
Problem Analysis and Available Data We need to compute the payroll taxes expense for BMX Company, assuming situation (a). We are given the following information:
FICA Social Security taxes are 6.2% of the first $137 , 700 paid to its employee.
FICA Medicare taxes are 1.45% of gross pay.
FUTA taxes are 0.6% of the first $7 , 000 paid to its employee.
SUTA taxes are 5.4% of the first $7 , 000 paid to its employee.
Gross Pay through August 31 is $5 , 200 .
Gross Pay for September is $2 , 400 .
Calculating Social Security Tax First, let's calculate the Social Security tax. The Social Security tax is 6.2% of the first $137 , 700 . The employee's cumulative pay through September is $5 , 200 + $2 , 400 = $7 , 600 . Since $7 , 600 < $137 , 700 , the Social Security tax is 6.2% of the September gross pay, which is $2 , 400 .
Social Security Tax = 0.062 × $2 , 400 = $148.80
Calculating Medicare Tax Next, we calculate the Medicare tax. The Medicare tax is 1.45% of the gross pay for September, which is $2 , 400 .
Medicare Tax = 0.0145 × $2 , 400 = $34.80
Calculating FUTA Tax Now, let's calculate the FUTA tax. The FUTA tax is 0.6% of the first $7 , 000 . The gross pay through August 31 is $5 , 200 . Therefore, only $7 , 000 − $5 , 200 = $1 , 800 is subject to FUTA tax in September. Since the gross pay for September is $2 , 400 , only 0.6% of $1 , 800 is considered for FUTA tax.
FUTA Tax = 0.006 × $1 , 800 = $10.80
Calculating SUTA Tax Next, we calculate the SUTA tax. The SUTA tax is 5.4% of the first $7 , 000 . The gross pay through August 31 is $5 , 200 . Therefore, only $7 , 000 − $5 , 200 = $1 , 800 is subject to SUTA tax in September. Since the gross pay for September is $2 , 400 , only 5.4% of $1 , 800 is considered for SUTA tax.
SUTA Tax = 0.054 × $1 , 800 = $97.20
Calculating Total Payroll Taxes Expense Finally, we calculate the total payroll taxes expense by summing the Social Security tax, Medicare tax, FUTA tax, and SUTA tax.
Total Payroll Taxes Expense = $148.80 + $34.80 + $10.80 + $97.20 = $291.60
Final Answer Therefore, the total payroll taxes expense is $291.60 .
Examples
Understanding payroll taxes is crucial for businesses to accurately budget and manage their finances. For instance, a small bakery needs to calculate its monthly payroll tax expenses to determine the true cost of employing its staff. By correctly calculating these taxes, the bakery can ensure it sets aside enough funds to meet its tax obligations, avoiding penalties and maintaining financial stability. This careful financial planning helps the bakery remain profitable and compliant with tax laws.
