Sunland Company's payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $171,000 $22,000 $6.000 Sales Office #1 46,000 6,000 2,000 Sales Office #2 38,000 3,000 1,000 Total $255,000 $31,000 $9,000 The state unemployment tax rate is 5.5%. However, Sunland receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee's wages to $114,000 and 1.45% in excess of $114,000. Of the $255,000 wages potentially subject to FICA tax, the following amounts are in excess of $114,000.