Refer to Exercise 7B-3. If Q. Roberts earned $3,100 for the week instead of $290, what effect would this change have on the total payroll tax expense?

In Exercise 7B-3

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 New is 5.9% on the first $7,000 of earnings for state unemployment purposes.

Transcribed Image Text:

Employee I. Benson K. Larry Q. Roberts Cumulative Earnings Before Weekly Payroll $3,300 6,200 7,600 Gross Pay for the Week $800 625 290