Tavella Company’s first weekly pay period of the year ends on January 8. On that date, the column totals Jn Tavella’s payroll register indicate its sales (^mploye^s earned $34,74;^, itsToffifl employees earned ($21,2i^, and its delivery ^ployees earned'$l,030fin salaries. The employees are to have withheld from their salaries FICA Social Security*taxes at the rate olJi6.21|), ‘FICA Medicare taxes at the rate of of federal income taxes, #1,160 of medical insurance deduction#, and Sii.38 of nMEBwadiies,-No employee earned more than $7,000 tn the-fissfr^ay-period.

Required 1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Tavella Company’s January 8 (employee) payroll expenses and liabilities. (Round amounts to cents.)

2. Prepare the journal entry to record Tavella’s (employer) payroll^taxes resulting from theJamiary 8 payroll. Tavella’s merit rating reduces its .stgjp^ iinp.mplnyrnp.nt|tax rate to 3.4% of the first $7,00(]ypaid each employee. The federal (unemployment tax rate is 0.8y. (feiTnd amounts to cents.)