Recording Payroll Taxes According to a summary of the payroll of Kirby Co., $451,500 in earnings were subject to the 7.8% FICA tax. Also, $72,240 in earnings were subject to state and federal unemployment taxes. Round your answers to the nearest cent. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.3%; federal unemployment, 0.8%. b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes. 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 Balance Sheet Income Statement of Cash Flows Assets Liabilities + Stockholders' Equity Statement No effect No effect = FICA tax payable + SUTA payable + FUTA payable + Retained earnings 0 Statement of Cash Flows Income Statement No effect 0 Payroll tax expense Feedback Check My Work a. Calculate the social security, Medicare, and state and federal unemployment taxes by multiplying the respective percentages with the amount of wages subject to payroll taxes. b. Increase the expense for payroll taxes along with payables for the social security, Medicare, and state and federal unemployment taxes