Stone Corporation has 25 employees and incurs total wages and salaries expense of $900,000 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 $350 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%

Some of the payroll-related expenses incurred by Stone Corporation are mandated by law, rather than negotiated with employees. During the current year, these mandated amounts increased Stone's payroll-related expenses by approximately:

Multiple Choice

• $68,850.

• $176,850.

• $131,850.

• $158,850.