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1) (10 points) An employee has an annual salary of $189,000. The employee pays 2000 per year in FSA, $3000 in DCA, $1500 in
1) (10 points) An employee has an annual salary of $189,000. The employee pays 2000 per year in FSA, $3000 in DCA, $1500 in LFSA, and $2700 per year in health insurance. Calculate the total amount of money that the IRS will receive for this employment in payroll taxes and unemployment insurance. Use the following tax information: SS tax is 6.2% of first $152,800 of wages Medicare tax is 1.45 % of wages FUTA is 7% on first $9,000 and 5.4% credit is given to employer who pays SUTA on time. SUTA is 3.5% on first $10,500 Assume that the employer does not pay SUTA on time. Assume employee will make the best use of all health/dependent care accounts. Assume employee has no tax dependents. Remember to show all the steps and all the calculations. Type or copy and paste your answer here
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