1. An employer has one employee who earned $4,000 his first month of employment. The employees federal income tax withholding (FITW) is $600, and the employee has voluntary monthly deductions of $350 for health insurance and $50 for union dues. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employer's FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. (Note: The limit for FICA Social Security is $128,400 and there is no limit for FICA Medicare. The limit is $7,000 for FUTA and $9,000 for SUTA.) What are the employers payroll tax expense for the first month of the year?

A. $240

b. $306

c. $546

d. $834

2. An employer has one employee who earned $4,000 his first month of employment. The employees federal income tax withholding (FITW) is $600, and the employee has voluntary monthly deductions of $350 for health insurance and $50 for union dues. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employer's FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. (Note: The limit for FICA Social Security is $128,400 and there is no limit for FICA Medicare. The limit is $7,000 for FUTA and $9,000 for SUTA.) What are the employees net pay for the first month of the year?

A. $2,694

b. $3,000

c. $3,600

d. $3,694