During the Month of July, Joel Mayer Earned $2,000

Multiple Choice

During the month of July, Joel Mayer earned $2,000. Joel has been on the payroll all year at a salary of $2,000 per month. Salaries are paid at the end of each month. Assume that FICA taxes are 7.65 percent of wages up to $50,000; state unemployment tax is 5.0 percent of wages up to $13,000; and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Joel has voluntary withholdings of $75 (in addition to taxes) and that federal and state income tax withholdings are $300 and $100, respectively. What is the employer's payroll tax expense for the month of July, assuming that Joel Mayer is the only employee?

A) $58
B) $211
C) $75
D) $611