Albert SoftTop Corp. pays quarterly wages and incurs federal employment taxes of $3,150 on said wages. They make the deposit on the required date in the amount of $3,085 (due to an input error in the software). Which calculation illustrates the safe harbor rules that Albert SoftTop Corp. can adhere to (assuming they pay the shortfall by the shortfall date)?

a.the safe harbor rules would only apply if the shortfall was greater than $62 (2% x $3,150).

b.$65 is less than the greater of $100 or 2% of the required deposit, so they are covered by safe harbor rules.

c.$65 is less than 2% of the required deposit, so they are covered by safe harbor rules.

d.$65 is under the $1,000 limit so they are covered by safe harbor rules.

Tio Tom's Dive Shop has 6 employees who each make $12,500 for the first quarter. Total quarterly federal income tax withheld from wages = $6,900. What should line 6 be on the first quarter Form 941 for Tio Tom's Dive Shop? (All wages are taxable for OASDI, HI and federal income tax).

a.$12,500.00.

b.$11,475.00.

c.$8,812.50.

d.$18,375.00.