In December 2010,Bob Cratchit worked for Scrooge & Marley and earned $1,000.Federal income tax withholding is 10%.The FICA rate is 6.2% and the Medicare tax is 1.45%.How much payroll tax expense for Bob's December salary will be reported on Scrooge & Marley's income statement for the year ended December 31,2010?
A)$76.50
B)$176.50
C)$153.00
D)$306.00

Question

Quizplus · Accepted Answer

Federal income tax withholding: $1,000 x 10% = $100FICA tax: $1,000 x 6.2% = $62Medicare tax: $1,000 x 1.45% = $14.50Total payroll tax expense: $100 + $62 + $14.50 = $176.50

In December 2010,Bob Cratchit Worked for Scrooge & Marley and Earned