Use This Information for Harris Company to Answer the Following

Multiple Choice

Use this information for Harris Company to answer the following questions.
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Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31.
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$$\begin{array} { l r l c } \text { Gross payroll } & \$ 10,000 & \text { Federal income tax withheld } & \$ 1,800 \\\text { Social security rate } & 6.0 \% & \text { Federal unemployment tax rate } & 0.8 \% \\\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%\end{array}$$ ​
-Assume that social security taxes are payable at a 6.0% rate, Medicare taxes are payable at a 1.5% rate with no maximum earnings, and federal and state unemployment compensation taxes total 4.6% on the first $7,000 of earnings. If an employee earns $2,500 for the current week and the employee's year-to-date earnings before this week were $6,800, what is the total payroll tax related to the current week?

A) $187.50
B) $196.70
C) $344.50
D) $9.20