During one pay period, star valley company distributes $140,000 to employees as net pay. the income tax withholdings were $20,900 and the fica withholdings were $9,086. total payroll costs to the company for this pay period, excluding any unemployment taxes, was: a.$160,900.b.$179,072.c.$169,986.d. $140,000.

b.$179,072

Explanation:

Tax: A tax may be defined as an involuntary contribution from individuals or corporations as required by law, with the purpose of raising revenue for the functioning of the public and government of a state. The tax contribution by the tax payers are not directly related to the benefits or privileges received from the concerned government.  

Payroll taxes: The income earned by employees for the employer which is subject to federal, state and local taxes and is placed on the payroll of the employer.

Classification of workers for the purpose of payroll taxes: The main classification of workers is employees and independent contractors.  

Employees: Employees are those who are controlled by employers in the areas like how they should work, where they should work, and when they should work. The performance of the employee is evaluated by the employer. Employees are placed on payroll of the employer.

Independent contractors: They engage in contractual agreements with clients (employers) to provide services for an agreed upon fee. The employer or the client who receives the services and pays the invoices or bill. They are not placed on payroll of the employer.

Federal Insurance Contributions Act Taxes

FICA taxes: The taxes that are imposed by federal government on employers and employees, to fund the federal plans like Social Security and Medicare which constitute the main components are referred to as FICA taxes. These taxes are used to provide benefits for the elderly, retired, orphans, and disabled.

Tax withholdings: The employees in general complete a Form W-4 in which they furnish all the relevant information to the employer in order to help withhold the correct amount of tax from the wages or salary paid to him.

C.$169,986

Explanation:

Total payroll cost is net pay plus tax deducted from total pay

$140,000+$20900+$9086

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.