I feel like @demarcon can't objectively answer my questions anymore!
But does anyone think its necessary to memorize this? I was given wages paid to the employee and it wants me to calc the taxes paid on that employee by memorizing all these tax rates. Seems like a lot.
Cash paid to an employee is deductible by the employer. Additionally, the employer may deduct the cost of FICA and FUTA taxes paid. The employer must pay 6.20% of the first $118,500 of wages paid for Social Security tax plus 1.45% of all wages for Medicare tax. FUTA tax is 6.00% of the first $7,000 of wages paid to each employee. Thus, Post has deductible FICA tax expense of $9,087 [($118,500 × 6.20%) + ($120,000 × 1.45%)] and deductible FUTA tax expense of $420 ($7,000 × 6.00%). Therefore, Post has gross profit of $70,493 ($200,000 revenue – $120,000 compensation – $9,087 FICA taxes – $420 FUTA taxes)
FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16
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