Question - According to a summary of the payroll of Matrix Publishing Co., $380,000 was subject to the 7.5% FICA tax. Also, $16,000 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.