Blossom Hardware Company's payroll for November 2017 is summarized below.
| Amount Subject to Payroll Taxes |
| Unemployment Tax |
| Payroll |
Wages Due |
FICA
|
Federal |
State |
| Factory |
$128,300 |
$128,300 |
$40,600 |
$40,600 |
| Sales |
34,500 |
34,500 |
4,200 |
4,200 |
| Administrative |
37,100 |
37,100 |
|
|
| Total |
$199,900 |
$199,900 |
$44,800 |
$44,800
|
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $199,900 wages subject to FICA tax, $21,100 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,300 for factory, $7,200 for sales, and $6,200 for administrative.