Bobby Darling Is the Only Employee of Atlantic Records, Inc

question 175

Multiple Choice

Bobby Darling is the only employee of Atlantic Records, Inc.During the first week of January, Darling earned $800 and had federal and state income tax withholdings of $40 and $15, respectively.FICA taxes are 7.65% on earnings up to $117,000.State and federal unemployment taxes for the period are $50 and $8, respectively.
-Use the information above to answer the following question.What is the employer's payroll tax expense for the week?

• A) $113.00
• B) $119.20
• C) $174.20
• D) $235.40

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Definitions:

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and goods.

Excise Tax

A tax levied on specific goods, services, or transactions, often targeted at commodities considered harmful, like alcohol and tobacco, or on luxury items.

Fried Twinkies

A snack created by deep-frying Twinkies, often resulting in a crispy outside and soft, warm inside, popular in fairs and festivals.

Tax Burden

The total impact of taxes on an individual or business, including the effects on income and purchasing power.