Recording Payroll and Payroll Taxes The following information about the payroll for the week ended September 15 was obtained from the records of Simkins Mining Co.: Salaries and wages: Deductions: Sales salaries $15,000 Income tax withheld $8,500 Employee Wages 20,000 U.S. savings bonds 1,000 Office salaries 10,000 Group insurance 3,000 $45,000 Tax rates assumed: FICA tax, 7.5% of employee annual earnings State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8% Indicate the effects on net assets and EPS of each of the following: 1. Recording and paying the payroll. 2. Recording the employer payroll taxes. 3. Paying the employee and employer payroll taxes. 1. Paying payroll 2. Recording employer payroll taxes Solvency Metric Profitability Metric Net Assets Earnings per Share 3,375 X Decrease 3. Paying employee and employer payroll taxes No effect Decrease No effect