Auditing for Errors, p 405 In April, the liability for federal and state unemployment tax for Riverside Corporation is recorded at about the same amount as for previous months. Philip Jenkins suggests that it usually begins to decrease in April. You have been asked to investigate the payroll data to discover whether there is a problem. Instructions: 1 Why would the liability for unemployment tax begin to decline in April? 2 If there is an error in the unemployment liability amounts, what is the likely cause? 3 Examine the information below. Write the correct amounts for the unemployment tax liabilities in the following table: Accumulated Earnings Jan-May $ 3,680.00 June Total Earnings $ 1,270.00 Federal Unemployment Tax State Unemployment Tax 6,250.00 2,160.00 5,370.00 1,620.00 6,730.00 2,080.00 4,980.00 1,680.00