ABC Consulting had two employees with the following earnings information:

EmployeeCumulative Earning as of 11/30/20X1Gross Earnings for Week Ending 12/15/20X1Poppy Smith$ 6,600$ 900Henry Murphy$ 131,300$ 3,400

Use the table above to calculate the employer payroll income taxes associated with Poppy's December 15 paycheck given the following tax rates: Social Security tax of 6.2% is levied on the first $132,900 of annual wages and the Medicare tax rate is 1.45% on all earnings. State unemployment tax of 5.4% and federal unemployment tax of 0.6% are both levied on only the first $7,000 of each employee's annual earnings.

Multiple Choice

$92.85

$68.85

$104.85

$55.80