Question

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $9,288. The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,541.17. What is the total amount of taxes withheld from the Portia's earnings

Answer 1

Answer:

total taxes withheld = $2,251.71

Explanation:

the journal entry to record Portia's wage expense:

Dr Wages expense 9,288

    Cr Federal income taxes withheld 1,541.17

    Cr FICA OASDI taxes withheld 575.86

    Cr FICA Medicare taxes withheld 134.68

    Cr Wages payable 7,036.29

net pay = $7,036.29

total taxes withheld = $9,288 - $7,036.29 = $2,251.71