Stone corp has 25 employees and incurs total wages and salaries expense of 900,000/year. The following table shows various payroll amounts as a perccenntage of this annual wage and salary expense:

workers comp ins-5%

SS and Medicare, employees and employers share combined.-15.3%

Pension and other post retirement cost expense (paid by employer)-5%

personal income withheld-10%

Employment taxes expense-2%

In addition, stone provides group insurance for the whole workforce. The cost is 350$ per month per employee.

Assume the federal government implements a 10% payroll tax upon employers to finance health for all citizens and residents. Stone will pay this tax instead of purchasng group health insurance. This will cause Stone's total annual payoll related expenses to:

a. decrease by 15,000

b. increase by 15,000

c. decease by 32,500

d. no change because payroll taxes are withheld from employees pay