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% Instructions: 1. For the September 15 payroll, determine the employee FICA tax payable. 3,375 2. Illustrate the effect on the accounts and financial statements of paying the September 15 payroll. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as nenative amounts. 2. Illustrate the effect on the accounts and financial statements of paying the September 15 payroll. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Assets Sept. 15. Statement of Cash Flows Balance Sheet Liabilities Income 3. Determine the following amounts for the employer payroll taxes related to the September 15 payroll: (a) FICA tax payable, (b) state unemployment tax payable, and (c) federal unemployment tax payable. Assume all salaries and wages are subject to statement and federal unemployment taxes. a. FICA tax payable b. State unemployment tax payable c. Federal unemployment tax payable 000 Illustrate the effect on the accounts and financial statements of recording the liability for the September 15 employer payroll taxes. If no account activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account creases and cash outflows as negative amounts. Assets Sept. 15. Statement of Cash Flows Balance Sheet Liabilities Stockholders' Equity Income Statement Feedback Check My Work 1. Multiply the total salaries with the FICA tax rate. 2. Each type of salary should increase an expense, and various liabilities should also be increased. 3. Remember that the employer is responsible for an amount of FICA tax equal to what the employee has paid plus the state and federal unemployment taxes. Multiply the total salaries with the respective rates. 4. Each type of employer tax reflects an increase in liabilities; the total of all three taxes should increase an expense