Compute the total payroll tax expense Aspen Ski Resorts

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Question - Aspen Ski Resorts has 150 employees, each working 40 hours per week and earning $17 an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free 5 skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of points the first $128,400 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2%% of the first $7.000 earned per employee.

Required - Compute the total payroll tax expense Aspen Ski Resorts will pay for the first week of January in addition to the total salary expense and employee withholdings.

Reference no: EM133072251

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