(Payroll Tax Entries) Star Wars Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.

Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages.
Vacations are taken the second and third weeks of August by Fisher, Ford, and Cushing. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The F.I.C.A. rate is 7.65%
on employee and employer on a maximum of $84,900 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee’s wage in excess of $84,900.
Instructions Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company’s liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities.

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Earnings to Weekly Vacation Pay to Be Employee Mark Hamill July 31 Pay Received in August $4,200 $180 Carrie Fisher 3,500 150 $300 Harrison Ford 2,700 110 220 Alec Guinness 7,400 250 Peter Cushing 8,000 290 580