During the First Week of January, Nathan Mills Earned $800

During the first week of January, Nathan Mills earned $800. Assume that FICA taxes are 7.65 percent of wages up to $50,000; state unemployment tax is 5.0 percent of wages up to $13,000; and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Nathan has voluntary withholdings of $40 (in addition to taxes) and that federal and state income tax withholdings are $72 and $24, respectively. What is the employer's payroll tax expense for the week, assuming that Nathan Mills is the only employee?

A) $46.40
B) $107.60
C) $40.00
D) $101.20

Correct Answer:

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