The total wage expense for Howie Co. was $150,000. Of this total, $30,000 was beyond the Social Security wage-base limit and not subject to this tax. All earn¬ ings are subject to Medicare tax, and $60,000 was beyond the federal and state unemployment wage base limits and not subject to unemployment taxes. Please calculate the total payroll tax expense for Howie Co. given the following rates and wage-base limits:

a. FICA tax rate: Social Security, 6.2 percent; Medicare, 1.45 percent.

b. State unemployment tax rate: 5.9 percent.

c. Federal unemployment tax rate (after credit): .8 percent.

 LO.1