Short Problem #2

A company's employees had the following earnings records at the close of the current payroll period:

Employees

Earnings Through Prior Pay Period

Earnings this Pay Period

D. Adams $11,300 $3,900

J. Hess 6,100 2,500

R. Lui 9,500 3,100

T. Morales 4,800 1,400

L. Vang 10,000 3,000

The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $76,200 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay

period.