Total gross payroll for the 450 employees of Abacus Corp for the first pay period in January was $940,000, none of which exceeded the annual limit for FICA, FUTA or SUTA. Federal income taxes withheld were $137,000. Abacus operates in a state with no individual income tax. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A./Medicare tax is 7.65% on an employee's wages. Each employee has $10 per pay period withheld from their paycheck for union dues which Abacus subsequently pays to the union. prepare the employer payroll expenses.

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