Question: Payroll for the pay period ended October 31, 2007 is summarized as follows:
Federal Amount of Wages Subject
Department Total Income Tax to Payroll Taxes
Payroll Wages Withheld F.I.C.A. Unemployment
Factory $ 75,000 $ 9,000 $70,000 $22,000
Sales 22,000 3,000 16,000 2,000
Office 18,000 2,000 8,000 -
$115,000 $14,000 $94,000 $24,000
Assume the following payroll tax rates:
F.I.C.A. for employer and employee 7% each
Unemployment 3%
What amount we accrue as its share of payroll taxes in its October 31, 2007 balance sheet?