Problem:
Mabel Miller is paid monthly. For the month of September, she earned a total of $6,200. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The rate for FUTA tax is 0.8% and the rate for SUTA tax is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. Federal tax withheld from Mabel's earnings was $900.
Required:
Question: What is the total amount of payroll deductions withheld from Mabel's earnings?
- $1,374.30.
- $1,758.70.
- $900.00.
- $474.30.
Note: Provide support for your underlying principle.