Below is a payroll sheet for Otis Import plc for the month of September 2019. Assume a 10% income tax rate for all employees and

Question

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Below is a payroll sheet for Otis Import plc for the month of September 2019. Assume a 10% income tax rate for all employees and an 8% Social Security tax on employee and employer.

Instructions
a. Complete the payroll sheet and make the necessary entry to record the payment of the payroll.
b. Make the entry to record the payroll tax expenses of Otis Import.
c. Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

Earnings to Aug. 31 September Earnings Income Tax Withholding Social Security 6,800 Name B.D. Williams 800 D. Raye K. Baker 6,500 700 1,100 7,600 1,900 F. Lopez A. Daniels 13,600 105,000 13,000 16,000 B. Kingston 112,000