In 2015, Willow Corporation Had Three Employees

question 42

Multiple Choice

In 2015, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $4,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee's wages up to $7,000. How much unemployment tax was paid to the state from Willow Corporation for 2015?

• A)$136
• B)$168
• C)$918
• D)$972
• E)$1,134

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Definitions:

Simple Interest Rate

The rate at which simple interest is calculated, usually on an annual basis.

Borrowed

Funds taken as a loan from a lender with the agreement to pay back with interest.

Term Deposit

A fixed-term investment held at a financial institution that pays interest at a specified rate and matures on a specific date.

Scotiabank

A Canadian multinational banking and financial services company, one of the largest in Canada in terms of deposits and market capitalization.