Tom's Gross Pay for the Week Is $800

question 118

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 previously exceeded the $7,000 cap.How much is the total amount of payroll taxes that Tom's employer must record as payroll tax expenses?

• A) $61.20
• B) $38.80
• C) $110.80
• D) $49.60

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Definitions:

Bargain and Sale Deed

A legal document transferring property ownership without making any warranties about the title.

Quitclaim Deed

A deed conveying only the right, title, and interest of the grantor in the property described, as distinguished from a deed conveying the property itself.

Exclusive Right to Sell Contract

An agreement between a property owner and a real estate broker giving the broker the sole authority to sell the property on the owner's behalf.

Commission

A fee or percentage of a sale paid to an agent or employee for facilitating or completing a transaction.