Tom's Gross Pay for the Week Is $800

question 141

Multiple Choice

Tom's gross pay for the week is $800.Tom's yearly pay is under the limit for OASDI.Assume that the rate for state and federal unemployment compensation taxes is 6.2%,and that Tom's pay year-to-date has not yet exceeded the $7,000 cap.How much is the amount of state and federal unemployment tax that Tom's employer must record as payroll tax expense and pay to the federal and state governments?

• A) $61.20
• B) $38.80
• C) $99.20
• D) $49.60