Chapter I, Problem 8Q

(a)

To determine

Payroll taxes

Payroll taxes are the types of taxes normally calculated as certain percentage of the salary. FICA taxes, Employee federal income taxes payable, Federal unemployment taxes payable and State unemployment taxes payable are the coming under the category of payroll tax.

To identify: The three types of payroll taxes.

(b)

To determine

To Describe: How the tax liability accounts and Payroll tax expenses are classified in the financial statements.