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 to 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 $122,700 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 0.6% are both levied on only the first
$7,000 of each employee's annual earnings.

A) $37.20
B) $45.90
C) $69.90
D) $81.90