In March, gross earnings of Perlman Company totaled $250,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unemployment taxes. A) Compute the employer's payroll tax expense.
B) Prepare the entry to record payroll taxes.

A. Employer payroll tax expense includes FICA and State and Federal Unemployment tax.

= (250,000 * 7.65%) + (250,000 * 5.4%) + (250,000 * 0.8%)

= 19,125 + 13,500 + 2,000

= $‭34,625

B.

Date      Details                                                          Debit              Credit

March    Payroll Tax expense                                $34,625

              FICA Taxes                                                                          $19,125

              State Unemployment Taxes                                             $13,500

              Federal Unemployment Taxes                                         $2,000‬

borrow money from the government then pay the government back 5k

answer; competency based pay;