Question

Tauruss gross pay for the week is $980. His yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2%, and that Tauruss pay year-to-date has not yet exceeded the $7,000 cap. His yearly pay is under the limit for OASDI. How much is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%) 3 ■ $120.56 O $135.73 $60.76 目$55.37
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Answer: $135.73

Payroll tax expense:
FICA-OASDI Tax (6.2% x $980) 60.76
FICA-Medicare Tax (1.45% x $980) 14.21
State and federal unemployment taxes 60.76
(6.2% x $980)
Total payroll tax expense $ 135.73
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