According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.
Required:
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
b. Journalize the entry to record the accrual of payroll taxes.

Explanation:

a  

Social Security Tax                  6600   =         110000*6%

Medicare Tax                                    1650    =            110000*1.5%

State Unemployment Tax           1350   =            25000*5.4%

Federal Unemployment Tax           200    =            25000*0.8%

Employer's payroll taxes          9800  

b  

Payroll Tax Expense                   9800  

Social Security Tax Payable                             6600

Medicare Tax Payable                                     1650

State Unemployment Tax Payable             1350

Federal Unemployment Tax Payable             200

To state Unemployment Tax Payable                       1350

years agooo ahaha. but honestly they need to update ! : )

was my answer wrong?