Phil Smith is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,438. Federal Insurance Contributions Act (FICA) tax for Social Security is 6.2% on the first $137,700 of earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate is 0.6 %, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,400.07. What is the amount of the employer's payroll taxes expense for this employee? (Round your intermediate calculations to two decimal places.) Multiple Choice $420.00 $2,044 67 $1,065 51 $1,151.79