Jason's gross pay for the week is $1,900
His yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6% and that Jason's year-to-date pay has not yet exceeded the $7,000 cap. His yearly pay is under the limit for OASDI. What 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) $107.35
B) $117.80
C) $259.35
D) $233.74
C .Gross Pay $1,900.00
OASDI ($1,900 x 6.2%) 117.80
Medicare ($1,900 x 1.45%) 27.55
FUTA ($1,900 x 6%) 114
Payroll Tax Expense $259.35
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