Problem - According to a summary of the payroll of Newman Publishing Co. $600,000 was subject to the 7.5% FICA Tax. Also $50,000 was subject to state and federal unemployee 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.