J. B. Kenton employs Sharla Knox at a salary of $32,000 a year. Kenton is subject to

Question:

J. B. Kenton employs Sharla Knox at a salary of $32,000 a year. Kenton is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Knox’s salary. In addition, Kenton must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.8% on the first $7,000 of Knox’s salary.

Compute the total cost to Kenton of employing Knox for the year.