First Street Restaurant incurred salaries expense of $60,000 for
2018. The payroll tax expense includes employer FICA tax, state
unemployment tax and federal unemployment tax. Year-to-date
earnings do not exceed $118,500. Of the total salaries, $17,000 is
subject to unemployment tax. Currently, state unemployment tax is
5.4% and federal unemployment tax is 0.6%. Also, the company
provides the following benefits for employees: health insurance
(cost to the company, $2,500), life insurance (cost to the company,
$700), and retirement benefits (cost...