QUESTION 5 An employer has one employee who earned $3,000 his first month of employment. The employee's federal income tax withholding (FITW) is $400, and the employee has voluntary monthly deductions of $125 for health insurance and $25 for union dues. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employer's FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. (Note: The limit for FICA Social Security is $128,400 and there is no limit for FICA Medicare. The limit is $7,000 for FUTA and $9,000 for SUTA.) What is the employee's net pay for the first month of the year? $2,003.50 $2,034.50 $2,220.50 $2,770.50 QUESTION 6 What are a company's obligations called that are not expected to be paid within the longer of one year or the company's operating cycle? Current assets Current liabilities Long-term assets Long-term liabilities