Comprehensive and Detailed in Depth Explanation:

Federal taxable wages exclude:

401(k) deferral → pre-tax

Section 125 Cafeteria → pre-tax

Charitable donations → post-tax, but not deductible for payroll tax purposes

LTD premiums (post-tax) → still included in taxable wages

Taxable Wage Calculation:

$1,500 – $150 (401k) – $150 (Section 125) = $1,200

Charitable contributions ($50) and LTD ($7) not excluded

Final Taxable Wages = $1,200 – $0 = $1,200 + $0 – $7 = $1,193

✅ Correct answer: C – $1,193.00