| Mount Saint Mary College NEWBURGH, NEW YORK LEADING CARING INNOVATING cial Accounting #2 Take Home Component QUESTION #1 Total payroll of Watson Co. was $930,000, of which $160,000 represented amounts paid in excess of $137,700 to employees. The amount of payroll subject to unemployment taxes (federal and state) totaled $200,000. Income taxes withheld were $225,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the FICA tax is 7.65% on an employee's wages to $137,700 and 1.45% in excess of $137,700. Instructions (a) Prepare the journal entry for the wages and salaries paid. (b) Calculate the employer's payroll taxes for FICA and (federal and state) unemployment. General Journal, Date Description Page 1 Post. Ref. Debit Credit