Use This Information for Harris Company to Answer the Following

Multiple Choice

Use this information for Harris Company to answer the following questions.
​
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31.
​
$$\begin{array} { l r l c } \text { Gross payroll } & \$ 10,000 & \text { Federal income tax withheld } & \$ 1,800 \\\text { Social security rate } & 6.0 \% & \text { Federal unemployment tax rate } & 0.8 \% \\\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%\end{array}$$ ​
-Assuming that all wages are subject to federal and state unemployment taxes, the employer's payroll tax expense would be

A) $1,370
B) $750
C) $620
D) $2,870