Bailey Dry Cleaners has six employees who were paid the following wages during 2019: Frank Johnson $25,000 Bill Long 16,000 Duff Morse 120,000 Laura Stewart 30,000 Cindy Sharpe 29,000 Melissa Ledbetter 21,000 Total $241,000 The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. The federal unemployment rate is 0.6%. The maximum unemployment wages per employee are $7,000 for both the state and the federal government. Income tax withholdings of 20% are applied to all employees. A F.I.C.A. tax rate of 8% on the employee and 8% on the employer is applied to the first $117,000 of each employees wages