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An employee receives an hourly rate of $65, with time and a half for all hours worked in excess of 40 during the week. Payroll
An employee receives an hourly rate of $65, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $950; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000.
Compute the employer's payroll tax expense related to this employees earnings.
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