Orson Nutrition pays its salespeople a base salary of $1,000 per month plus a commission. Each salesperson starts with a commission of 1% of total gross sales for the month. The commission is increased thereafter according to seniority and productivity, up to a maximum of 5%. Orson has five salespeople with gross sales for the month of March and commission rates as follows: Commission Gross Rate Sales IDs ow ene cial atin rah a das. so eicida couche EET) RE AE 4.5% $100,000 Derral disse press maiuecs 6osno we un Sch the Ee eA 5.0 120,000 ClCH Os tethe P teh et ei ela 5, 25 80,000 ANIMA ss, eters yet eeecs bese eutushe i oc, mse coat cE eee. 3.0 50,000 la SVG ia cas cece nea ARC ace eas AACS Ne aes As csp 0s RE RE oh 1.0 200,000 The FICA tax rate is 7.65%. In addition, state and federal income taxes of 20% are withheld from each employee. 1. Compute Orson’s total payroll expense (base salary plus commissions) for the month. 2. Compute the total amount of cash paid to employees for compensation for the month. 3. Interpretive Question: Briefly outline the advantages and disadvantages of having no income taxes withheld, but instead relying on individual taxpayers to pay the entire amount of their income tax at the end of the year when they file their tax return.