Answer:
b.$5,708.
Explanation:
The computation of the actual direct deposit of payroll is shown below:
= Total salary expense - Total salary expense × Federal income tax rate - Total salary expense × state income tax rate - Total salary expense × FICA tax rate
= $8,000 - $8,000 × 15% - $8,000 × 6% - $8,000 × 7.65%
= $8,000 - $1,200 - $480 - $612
= $5,708
The total salary expense is computed below:
= 10 employees × 40 hours × $20
= $8,000
