Recording Payroll and Payroll Taxes The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co.: Salaries: Sales salaries Employee Wages Office salaries Deductions: 530,000 Income tax withheld $17,000 U.S. savings bonds 40,000 2,000 20,000 Group insurance 6,000 $90,000 Tax rates assumed: FICA tax, 7.5% of employee annual earnings State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8% Instructions: . For the October 4 payroll, determine the empl employee FICA tax payable. 6,750 V 2. Illustrate the effect on the accounts and financial statements of recording the October 4 payroll. If no account or activity is affected, select "No effect entry box blank. Enter account decreases and cash outflows as negative amounts. from the dropdown list and leave the corresponding numbe Balance Sheet Statement of Stockholders Assets Liabilities Cash Flows Equity October 4 Statement of Cash Flows Income Statement