Question 1: During the first week of January, Sam Jones earned $200. Assume that FICA taxes are 7.65 percent of wages up to $50,000, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Sam has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively.
Question 2: Using the information above, what is the employer's payroll tax expense for the week, assuming that Sam Jones is the only employee?
a. $6.32
b. $26.90
c. $10.00
d. $19.05
Question 3: Interest cost relating to defined-benefit pension plans represents the
a. increase in projected benefit obligation as a result of recomputing the firm's pension obligation when estimated turnover and other relevant factors related to the pension are reassessed.
b. increase in the projected benefit obligation from the beginning of the year to the end of the year solely due to the passage of time.
c. increase in the projected benefit obligation during the year resulting from all factors affecting the projected benefit obligation.
d. expected return on the plan assets for the year.