The Dehl Company payroll for the first week in January was $12,000. The amount of income tax withheld was 12 percent and the FICA, state unemployment, and federal unemployment tax rates were 8 percent, 5 percent, and 1 percent, respectively. The amount of the employees' withholding taxes are:
A)$1,680.
B)$2,400.
C)$1,440.
D)$3,120.

Question

Quizplus · Accepted Answer

Employees' withheld taxes = (12% + 8%) $12,000 = $2,400. The state and federal unemployment taxes are the employer's responsibility, as is the FICA employer's portion.

The Dehl Company Payroll for the First Week in January