You are paid monthly at $10,000 per month. In December, 2017, you hit the $118,000 limit on FICA-social security.

Tax rates are as follows. FICA-social security 6% FICA-medicare 1.5%

State unemployment SUTA 5%; and Federal unemployment FUTA 2%; both on the first $12,000 earned per year

1. Your employer withholds 25% of your pay each month for federal income taxes. How much is your December pay check (net pay or take-home pay)?

a. $6,900 b. $6,870 c. $6,200 d. $6,170

2. What is the cost to the company of employing you for the year 2017?

a. $127,950 b. $137,400 c. $129,720 d. $120,000