Bobby Darling is the only employee of Atlantic Records, Inc.During the first week of January, Darling earned $800 and had federal and state income tax withholdings of $40 and $15, respectively.FICA taxes are 7.65% on earnings up to $117,000.State and federal unemployment taxes for the period are $50 and $8, respectively.
-Use the information above to answer the following question.What is the employer's payroll tax expense for the week?
A) $113.00
B) $119.20
C) $174.20
D) $235.40

Question

Quizplus · Accepted Answer

The employer's payroll tax expense includes the employer's portion of FICA taxes (7.65% of $800 = $61.20), state unemployment tax ($50), and federal unemployment tax ($8). Adding these gives $61.20 + $50 + $8 = $119.20.

Bobby Darling Is the Only Employee of Atlantic Records, Inc