Payroll Accounting}

Baghdad Manufacturing has the following data available for its March 31, 2018, payroll:

\section*{Required:}
1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. (Note: Round to the nearest penny.)
2. Baghdad Manufacturing would like to hire a new employee at a salary of \(\$ 80,000\). Assuming the payroll taxes are as described above and fringe benefits (e.g., health insurance, retire-
\section*{YOUDECIDE} ment, etc.) are \(28 \%\) of gross pay, what will be the total cost of this employee for Baghdad?
OBJECTIVE (2) Problem

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Wages earned Income taxes withheld $1,250,000* 180,600