The Fiesta Royale Corporation payroll for the first week in January was $14,000.The amount of income tax withheld was 20 percent and the FICA,state unemployment,and federal unemployment tax rates were 8 percent,5 percent,and 1 percent,respectively.The amount of the employees' withholding taxes are:
A)$4,760.
B)$3,920.
C)$2,800.
D)$5,100.

Question

Quizplus · Accepted Answer

First, we need to calculate the total amount of taxes withheld from the employees' paychecks.

Income tax withheld: 
20% of $14,000 = $2,800

FICA, state unemployment, and federal unemployment taxes: 
Total tax rate = 8% + 5% + 1% = 14% 
14% of $14,000 = $1,960

Therefore, the total amount of taxes withheld from the employees' paychecks is: 
$2,800 + $1,960 = $4,760

So the correct answer is B.

The Fiesta Royale Corporation Payroll for the First Week in January