Barker Company Has 5 Sales Employees, Each of Whom Earns

Barker Company has 5 sales employees, each of whom earns $24,000 per month and is paid on the last working day of the month. The gross monthly payroll is subject to federal unemployment taxes of 0.8% and state unemployment taxes of 4.0%. All earnings are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45%. Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $660 for each employee.
Monthly payroll tax expense for January 31 will be:

A) $14,940
B) $18,240
C) $16,440
D) $34,140