Use the table above to calculate the employer payroll income taxes associated with Henry's December 15 paycheck giving the following tax rates: Social Security tax of 6.2% is levied on the first $132,900 of annual wages and the Medicare tax rate is 1.45% on all earnings. State unemployment tax of 5.4% and federal unemployment tax of 0.6% are both levied on only the first $7,000 of each employees annual earnings.

ABC Consulting had two employees with the following earnings information: Employee Poppy Smith Henry Murphy Cumulative Gross Earnings Earning as of for Week Ending 11/30/20X1 12/15/20X1 $ 6,600 $ 600 $ 129,900 $ 4,000 Multiple Choice $111.60 $58.00 $244.00 $484.00