During January, Luxury Cruise Lines incurs employee salaries of $3 million. Withholdings in January are $229,500 for the employee portion of FICA, and $667,500 for employee federal and state. The company incurs an additional $186,000 for federal and state unemployment tax and $90,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield).

Required:

1. Record the employee salary expense, withholdings, and salaries payable.

2. Record the employer-provided fringe benefits.

3. Record the employer payroll taxes.