Payroll Tax Entries

According to a summary of the payroll of Guthrie Co., $635,000 was subject to the 6.0% social security tax and $781,000 was subject to the 1.5% Medicare tax. Also, $21,000 was subject to state and federal unemployment taxes.

Question Content Area

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.6%. $