Suppose Jim worked 72 hours during this payroll period and i

Suppose Jim worked 72 hours during this payroll period and is paid $13.00 per hour Assume FICA is 6.2%, Medicare is 1.45% and withholding tax is 10%.

Solution

SOLUTION

Gross pay = Hours worked * Payment per hour

= 72 hours * $13 = $936.

Employer\'s total payroll tax liability = (6.2%+1.45%+10%) * $936.

= $165.20