Thomas Longbow is the only employee of Presido,Inc.During the first week of January,Longbow earned $1,600 and had federal and state income tax withholdings of $80 and $30,respectively.FICA taxes are 7.65% on earnings up to $127,200.State and federal unemployment taxes for the period are $100 and $16,respectively. What is Presido's payroll tax expense for the week?
A)$226.00
B)$238.40
C)$348.40
D)$470.80

Question

Quizplus · Accepted Answer

Payroll tax expense = Employer's FICA match + Federal unemployment tax + State unemployment tax
= ($1,600 ×0.0765)+ $100 + $16 = $238.40

Thomas Longbow Is the Only Employee of Presido,Inc