Below is a payroll sheet for Otis Import plc for the month of September 2022. Assume a 10% income tax rate for all employees and an 8% Social Security tax on employee and employer.

Instructions

a. Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

b. Make the entry to record the payroll tax expenses of Otis Import.

c. Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

Transcribed Image Text:

Earnings September Income Tax Social to Aug. 31 Earnings Withholding Security Name B.D. Williams £ 6,800 £ 800 D. Raye 6,500 700 K. Baker 7,600 1,100 F. Lopez 13,600 1,900 A. Daniels 105,000 13,000 B. Kingston 112,000 16,000