3. (10) Total payroll of Watson Co. was $2,000,000, all of which is enire The amount paid to employees in excess of $7,000 was $1,600,000 ($7000 15 employee ceiling for unemployment taxes). Income taxes withheld were s4 state unemployment tax is 1 2%, the federal unemployment tax is .8%, and the tax is 7.65%. is the per- 50,000. The F.I.CA. Instructions (a) Prepare the journal entry for the salaries and wages paid. (b) Prepare the entry to record the employer payroll taxes. a) wa ses and salaes e xpense holins taxes Payable$ee 5o,000