The following illustrates the concept of accrued liabilities related to payroll deductions. Assume

Mill Company has a weekly payroll of $$25,000$ that is entirely subject to FICA and Medicare

$(7\mathrm{.}65\%),$ federal unemployment tax $(\mathrm{.}8\%),$ and state unemployment tax $(3\%).$ Income tax

withholding amounts to $$3,300,$ and employee credit union deductions for the week total $$975.$

No employee$$s wages exceed the $$7,000$ compensation ceiling got unemployment taxes. Two

entries are necessary to record the payroll: $(1)$ salaries and wages paid to employees, and $(2)$

employer$$s payroll taxes