According to a summary of the payroll of Zumwalt Co., $345,000 was subject to the 7.5% FICA tax. Also, $30,000 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.