For the 12th monthly payroll of the calendar year the following information is provided:

Employee	Monthly Pay Rate	Income Tax Withheld	Union Dues Withheld
A	$6,700	$1,340	$15
B	600	120	6
C	8,000	1,600	24
D	3,200	640	7

All earnings are subject to the Social Security tax and the Medicare tax. The Social Security tax rate for both the employees and employers portion of the tax is 6%. The Medicare tax rate for both the employees and employers portion is 1.5%.

The State Unemployment tax rate is 3% and the net Federal Unemployment rate is 0.8%. Maximum annual earnings subject to State and Federal Unemployment tax are $7,000 per employee. Unemployment taxes are only levied on the employer.

All of the employees were employed for the entire year and were entitled to the full monthly pay rate for each month of the year. Assume all employees will be paid for the current payroll period by the last day of the current calendar year.

1) The amount of State Unemployment tax withheld from employee pay during the current payroll period is:

a) $0

b) $3,700

c) $18

d) $12

2) The employers liability for the net Federal Unemployment tax on employee wages for the current payroll period is:

a) $12

b) $3.20

c) $555

d) $18

3) The total payroll tax expense for the employer for the current payroll period is:

a) $895.50

b) $1402.70

c) $15.20

d) $1,782.20