Payroll costs and bonus Marsha's Ceramics has two highly-skilled employees who design and produce exquisite ceramic pieces. Each earns a salary of $1,495 per month. Each also gets 1 /2 month of paid vacation and a bonus at the end of the year equal to one month's pay. The company treats the bonuses and vacation pay as indirect cost. The company deducts 22 percent of salary for federal income tax, 5 percent for state income tax, and 7 percent for FICA tax, and pays 14 percent of gross pay into a pension fund. There is no workers' compensation or FUTA tax liability.

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REQUIRED a. Record the May payroll. b. Record the additional payroll costs for May. c. Record the distribution of the payroll costs.