A company has a total payroll of $112,500 for the current month for all its employees. The FICA-Social Security rate is 6.2%, Medicare Tax rate is 1.45%, FUTA rate is 0.8% and SUTA rate is 5.4% of gross salary for all employees. No employee’s payroll has reached the limit for FICA, however, $25,000 of the payroll is subject to unemployment taxes. In addition, employee Federal Income taxes are $ 4,500 and employee Medical Insurance deductions are $1500. Given these facts, what is the amount accrued by the company for salaries payable for the current period?
A. $103,893.75
B. $96,343.75
C. $97,893.75
D. $90,918.75
E. $112,500

I have this question for my homework in accounting. I keep on getting B and not C. My Debit's are to Payroll Expense for 112,000 and credits too FICA payable for 6975 and 1631.25, FUTA and SUTA for 200 and 1350 respectively. And credits too Medical Insurance for 1500 and Income tax for 4500. Where am I going wrong? I'm using the accrual basis.

All your figures are correct, but FUTA and SUTA are not deducted from employee's pay. They are paid by the employer themselves. So they do not affect the net pay.

FUTA is never a deduction. Some states do deduct for SUTA, but given that C is supposed to be the correct answer, not in this problem -- most accounting textbooks do not have SUTA as ever being a deduction.