Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,375.17. What is the total amount of taxes withheld from the Phoenix's earnings?
To calculate the total amount of taxes withheld from Phil Phoenix's earnings, we need to calculate the individual taxes and then sum them up.
1. Calculate the amount of Social Security tax withheld:
- Social Security tax rate: 6.2%
- Earnings subject to Social Security tax: $7,000 (as this is the maximum limit)
- Social Security tax withheld: 6.2% of $7,000
2. Calculate the amount of Medicare tax withheld:
- Medicare tax rate: 1.45%
- Total earnings: $8,288
- Medicare tax withheld: 1.45% of $8,288
3. Calculate the amount of Federal Income Tax withheld: $1,375.17
4. Calculate the FUTA tax withheld:
- FUTA tax rate: 0.8%
- Earnings subject to FUTA tax: $7,000
- FUTA tax withheld: 0.8% of $7,000
5. Calculate the SUTA tax withheld:
- SUTA tax rate: 5.4%
- Earnings subject to SUTA tax: $7,000
- SUTA tax withheld: 5.4% of $7,000
Once you have calculated all these individual tax amounts, sum them up:
Total taxes withheld = Social Security tax withheld + Medicare tax withheld + Federal Income Tax withheld + FUTA tax withheld + SUTA tax withheld
Note: Ensure that all percentages are converted to decimal format before multiplying them with the amounts.
Calculate the values for each individual tax and sum them up to find the total amount of taxes withheld from Phil Phoenix's earnings.