Berra Company?s payroll for December 2017 is summarized below.

Amount Subject to Unemployment Taxes
Payroll	Wages Due	Federal	State
Headquarters	$178,000	$23,000	$6,000
Sales Office #1	48,000	6,000	2,000
Sales Office #2	40,000	3,000	1,000
Total	$266,000	$32,000	$9,000

The state unemployment tax rate is 5.5%. However, Berra receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee?s wages to $118,500 and 1.45% in excess of $118,500. Of the $266,000 wages potentially subject to FICA tax, the following amounts are in excess of $118,500.

Headquarters	$18,000
Sales Office #1	20,000
Sales Office #2	16,000

The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $20,000 for headquarters, $7,000 for sales office #1, and $6,500 for sales office #2.