Mission Company Has Three Employees What Is Mission Company's Amount for Payroll Taxes for Smith

question 114

Multiple Choice

Mission Company has three employees:
$\begin{array} { c c c } & \text { Gross Pay through July } & \text { Gross Pay for August } \\\text { Smith } & \$ 3,200 & \$ 1,000 \\\text { Cain } & 25,800 & 3,500 \\\text { Clark } & 94,600 & 13,100\end{array}$
$\begin{array} { l c l } \text { Tax } & \text { Rate } & { \text { Applied To } } \\\text { FICA-Social Security } & 6.20 \% & \text { First } \$ 106,800 \\\text { FICA-Medicare } & 1.45 & \text { All gross pay } \\\text { FUTA } & .80 & \text { First } \$ 7,000 \\\text { SUTA } & 5.40 & \text { First } \$ 7,000\end{array}$
What is Mission Company's amount for payroll taxes for Smith?

• A) $62.00
• B) $138.50
• C) $443.20
• D) $581.70
• E) $76.50

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Definitions:

Organization's Profitability

A measure of the efficiency and financial success of an organization, determined by the extent to which its income exceeds its costs and expenses.

Period of Time

A specific duration marked by a beginning and an end, often used to describe or measure events or changes.

Indebtedness

The condition of owing money or being under financial obligation to others, which could include loans or issued bonds.