Stone Corporation has 22 employees and incurs total wages and salaries expense of $748,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense: In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $370 per month per employee.

Workers compensation insurance	5%
Social security and Medicare (employees' share and Employer's share combined)	15.3%
Pension and other postretirement benefits expense (paid by employer)	5%
Employee Federal and State withholding taxes	10%
Unemployment taxes expense	2%

The company's annual payroll-related expenses amount to approximately:

Multiple Choice

• $992,662.

• $912,560.

• $748,000.

• $1,067,462.