Taurus's Gross Pay for the Week Is $980

question 145

Multiple Choice

Taurus's gross pay for the week is $980. His yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2%, and that Taurus's pay year-to-date has not yet exceeded the $7,000 cap. His yearly pay is under the limit for OASDI. How much is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)

• A)$55.37
• B)$60.76
• C)$135.73
• D)$120.56

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Definitions:

Current Ratio

Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Net Income

The total profit of a company after deducting all expenses, taxes, and costs from its total revenue.

Profitability Ratios

Financial metrics that assess a firm's ability to generate profit relative to its revenue, assets, equity, or other financial metrics over a specified period.

Average Common Stockholders' Equity

The average equity stake held by common shareholders within a company, assessed over a specific period.