Given the following parameters:
The employer pays the employee (gross earnings) – $1,200
The employer pays for social security and medicare taxes – $91.80
The employer pays for the Federal Unemployment Tax Act (FUTA) – $9.60
The employer pays for the State Unemployment Tax Act (SUTA) – $64.80
The total cost of this employee to the employer is the summation of all these costs
1,200 + 91.80 + 9.60 + 64.80 = $1366.20
Answer:
1,366.20
Explanation:
Particulars Amount
Gross payment $1,200
Social security and Medicare taxes $91.80
FUTA $9.60
SUTA $64.80
Total Cost $1,366.20
The average total cost varies from business to business. For an employer, the major amount of total cost lies in the payment of salaries or wages, the tax liability upon the employees' wages, and few operating costs of the business.
