Assume the FUTA tax rate is 0.8% and the SUTA tax rate is 5.4%. Both taxes are applied to the first \($7,000\) of an employee’s pay. What is the total unemployment tax an employer must pay on an employee’s annual wages of \($40,000\) ?

a.  \($2,480\)

b.  \($434\)

c.  \($56\)

d.  \($378\)

e. Zero; the employee’s wages exceed the \($7,000\) maximum.