Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?

$2,061

Explanation:

DATA:

Number of employees = 15 employees

Number of hours worked = 40 hours

Earning per hour = $30

Tax Rate = 15%

Unemployment tax rate = 3.8%

FICA tax rate = 7.65%

Solution

Employer's total payroll tax expense can be calculated by adding the FICA tax and unemployment tax from the employee's Basic pay.

Calculation

Basic Pay (15x40x30)                            = $18,000

FICA (18,000 x 7.65%)                            = $1,377

Unemployment tax ( 18,000 x 3.8%)     = $684

Employer's total payroll tax expense    = $2,061

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.