Computing and journalizing employers payroll taxes LO₃ The following form is used by The Monarch Manufacturing Company to compute payroll taxes incurred during the month of April:

Required:
1 . Using the previous form, calculate the employer's payroll taxes for April.
Assume that none of the employees has achieved the maximums for FICA and unemployment taxes.
2. Assuming that the employer payroll taxes on factory wages are treated as factory overhead, the taxes covering administrative salaries are an administrative expense, and the taxes covering sales salaries are a selling expense, prepare a general journal entry to record the employer's liability for the April payroll taxes.

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Unemployment Taxes Earnings FICA Federal State Total Payroll Classification of for Tax Tax Tax Taxes Imposed Wages and Salaries Month 8% 1% 4% on Employer Direct labor 88,180 Indirect labor.. 16.220 Payroll taxes on factory wages Administrative salaries... 12,000 Sales salaries. 11,500 Total payroll taxes