The Dehl Company Payroll for the First Week in January

question 38

Multiple Choice

The Dehl Company payroll for the first week in January was $12,000. The amount of income tax withheld was 12 percent and the FICA, state unemployment, and federal unemployment tax rates were 8 percent, 5 percent, and 1 percent, respectively. The amount of the employees' withholding taxes are:

• A)$1,680.
• B)$2,400.
• C)$1,440.
• D)$3,120.

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Definitions:

Spouse

Spouse refers to a partner in a marriage.

Procure Policy

The process of obtaining or arranging an insurance policy.

National Insurance

A system of taxes and payments made by workers and employers to fund state benefits, primarily in the UK.

Broker

A person or firm that acts as an intermediary between a buyer and seller, usually charging a commission.