Payless,Inc's gross payroll was $100,000 for the current pay period.Federal income tax (FIT)withheld totals $20,000.The FICA (Social Security)rate is 6.2% and the Medicare rate is 1.45%.
Part A: Show the effect of paying its employees (do not record the employer’s payroll taxes): 
Part B: How much cash will Payless,Inc.have to pay to the government for Federal income taxes,Social Security,and Medicare on the gross payroll of $100,000?
Definitions:
Relative Price
The price of one good or service compared to another, essentially reflecting its cost in terms of other goods and services.
Demand Curve
A graphical representation that shows the relationship between the price of a good or service and the quantity that consumers are willing and able to purchase at various prices.
Price of Land
The monetary value assigned to a piece of land based on its characteristics, demand, and supply conditions.
Demand for Trees
The consumer desire or market requirement for trees, whether for lumber, paper products, or environmental benefits.
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