Refer to Exercise 7A-3. If Q. Roberts earned $2,100 for the week instead of $330, what effect would this change have on the total payroll tax expense?

In Exercise 7A-3

Employee ____ Cumulative Earnings Before Weekly Payroll ____ Gross Pay for the Week

O. Barns ................................$3,600 ............................................. $925

C. Hart ...................................6,600 ............................................. 600

Q. Roberts ..............................7,500 ............................................. 330

The FICA tax rate for OASDI is 6.2% on the first $117,000 earned, and Medicare is 1.45% on all earnings. Federal unemployment tax is 0.6% on the first $7,000 earned by each employee. The SUTA tax rate for Driving Company is 5.8% on the first $7,000 of employee earnings for state unemployment purposes.