Barr Fails to Make a Timely Deposit of FICA Taxes

Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date.The penalty facing Barr is: 1.Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimals places (round the hourly rate to 2 decimal places
Before multiplying by one and one-half to determine the overtime rate) .
2) If the third decimal place is 5 or more,round to the next higher cent.
3) If the third decimal place is less than 5,drop the third decimal place.
Also,use the minimum hourly wage of $7.25 in solving these problems and all that follow.

A) 2% of the undeposited taxes.
B) 5% of the undeposited taxes.
C) 10% of the undeposited taxes.
D) 25% of the undeposited taxes.
E) none of the above.