What is the total cost to the employer for an employee who earned $325.00 after withholding federal taxes, social security, and state taxes?

When calculating the total cost to the employer for an employee's earnings, it's important to consider not just the net paycheck that the employee takes home, but also the additional costs incurred by the employer due to taxes and other withholdings. The amount the employee earned, in this case, is $325.00 after all withholdings have been applied.

The correct answer indicates that the total cost to the employer is higher than the employee's take-home pay. This includes contributions to Social Security and Medicare taxes, as well as any applicable state unemployment insurance and possibly other employer liabilities. These employer contributions can significantly raise the overall cost of employment beyond just the salary or wage paid to the employee.

Thus, the employer's total cost includes the net amount that the employee receives plus the various payroll taxes and contributions required by law, leading to a calculated total of $349.86 when all of these factors are factored in. This illustrates the importance of understanding the full financial implications of employee compensation, not only for budgeting and financial planning but also for compliance with tax laws.