Problem:
A company's employees had the following earnings records at the close of the current payroll period:
Earnings through Earnings this
Employees Prior pay Period Pay Period
D. Adams $11,300 $3,900
J. Hess 6,100 2,500
R. Lui 9,500 3,100
T. Morales 4,800 1,400
L. Vang 10,000 3,000
The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $84,900 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period.