Sunland Company's payroll for December 2017 is summarized below.  

 

The far left column is

Wages

FICA

Federal UT

State UT

Total cost

Sunland Company's payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $214,000 $28,000 $7,000 Sales Office #1 58.000 7,000 2,000 Sales Office #2 48,000 4,000 1,000 Total $320,000 $39,000 $10,000 The state unemployment tax rate is 5.5%. However, Sunland receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee's wages to $142,000 and 1.45% in excess of $142,000. Of the $320,000 wages potentially subject to FICA tax, the following amounts are in excess of $142,000. Headquarters $22,000 Sales Office #1 24,000 Sales Office #2 19,000 The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8.000 for sales office #1, and $7,800 for sales office #2.