According to a summary of the payroll of Newman Publishing Co. $600,000 was
Subject to the 7.5% FICA tax. Also, $50,000 was subject to state and federal unemployment
Taxes.
a. Calculate the employer’s payroll taxes, using the following rates: state unemployment,
4.3%; federal unemployment, 0.8%.
b. Illustrate the effects on the accounts and financial statements of recording
The accrual of payroll taxes.