Payroll Tax Entries According to a summary of the payroll of Mountain Streaming Co., $508,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $17,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.8%. Forsback Check My Work Remember that there is typically a maximum amount of earnings subject to state and federal unemployment taxes. Learning Objective 2. b. Journalize the entry to record the accruat of payrolt taxes. If an amount box does not require an entry, leave it blank. Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable 30,450 7.620 State Unemployment Tax Payable 714 Federal Unemployment Tax Payable