1. Question Content Area

   Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 1531.

   Gross payroll	$10,000		Federal income tax withheld	$1,800
   Social security rate	6%		Federal unemployment tax rate	0.8%
   Medicare rate	1.5%		State unemployment tax rate	5.4%

   Assuming that all wages are subject to federal and state unemployment taxes, the employer's payroll tax expense would be

   a.$750

   b.$2,870

   c.$620

   d.$1,370