ABC Consulting Had Two Employees with the Following Earnings Information

Multiple Choice

ABC Consulting had two employees with the following earnings information: Use the table above and calculate the employer payroll income taxes associated with Poppy's December 15 paycheck given the following tax rates: Social Security tax of 6.2% is levied on the first $113,700 of annual wages and the Medicare tax rate is 1.45% on all earnings.State unemployment tax of 5.4% and federal unemployment tax of .6% are both levied on only the first $7,000 of each employee's annual earnings.

A) $622.65
B) $68.25
C) $56.25
D) $23.45