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B. F. Goodson employs Eduardo Gonzales at a salary of $46,000 a year. Goodson is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Gonzales’s salary. In addition, Goodson must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.6% on the first $7,000 of Gonzales’s salary.
Compute the total cost to Goodson of employing Gonzales for the year.
Computation of the total cost to Goodson of employing Gonzales for theyear.Gross wagesEmployer Social Security tax, 6.2% of $46,000Employer Medicare tax, 1.45% of $46,000State unemployment…
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