NEP Corp. has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee.  What is NEP's total payroll tax expense for the first week of January?   Select one: a. $18,000 b. $5,841 c. $2,061 d. $684 e. $1,377

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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NEP Corp. has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. 

What is NEP's total payroll tax expense for the first week of January?


 

Select one:
a. $18,000
b. $5,841
c. $2,061
d. $684
e. $1,377
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