According to a payroll register summary of Sterrett Company, the amount of employees’ gross pay in December was $800,000, of which $70,000 was not subject to FICA tax and $760,000 was not subject to state and federal unemployment taxes.

Instructions
  (a) Determine the employer’s payroll tax expense for the month, using the following rates: FICA 8%, state unemployment 5.4%, federal unemployment 0.8%.
  (b) Prepare the journal entry to record December payroll tax expense.