Question
Question
I know the answer is $1,370, but I need to know to calculate it.I'm missing something. Thanks,
Assuming no employees are subject to ceilings for theirearnings, Jensen Company has the following information for the payperiod of January 15  31, 20xx.
Gross payroll 
$10,000 

Federal income tax withheld 
$1,800 
Social security rate 
6% 

Federal unemployment tax rate 
.8% 
Medicare rate 
1.5% 

State unemployment tax rate 
5.4% 





Assuming that all wages are subject to federal and stateunemployment taxes, the Payroll Taxes Expense would be recordedas:
A. $1,370
B. $750
C. $620
D. $2,870