Total Cost of Empleyee R.D. Kagen employs Audrey Lopez at a salary of $33,800 a year. Kagen is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Lopez's salary. In addition, Kegen must pey SUTA tax et a rate of 5.4% and FUTA tax at a rate of 0.0% on the first $7,000 uf Lopez's salary. Compute the total cost to Kagen of emplaying Lopez for the year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Total Cost of Empleyee
R.D. Kagen employs Audrey Lopez at a salary of
$33,800 a year. Kagen is subject to employer Social
Security taxes at a rate of 6.2% and Medicare taxes at a
rate of 1.45% on Lopez's salary. In addition, Kegen must
pey SUTA tax et a rate of 5.4% and FUTA tax at a rate of
0.0% on the first $7,000 uf Lopez's salary.
Compute the total cost to Kagen of emplaying Lopez for
the year.
Transcribed Image Text:Total Cost of Empleyee R.D. Kagen employs Audrey Lopez at a salary of $33,800 a year. Kagen is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Lopez's salary. In addition, Kegen must pey SUTA tax et a rate of 5.4% and FUTA tax at a rate of 0.0% on the first $7,000 uf Lopez's salary. Compute the total cost to Kagen of emplaying Lopez for the year.
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