Louann Winters is a vice president at Crossroads Bank. During 2008, Winters worked for the bank all year at a \(\$ 6,500\) monthly salary. She also earned a year-end bonus equal to \(15 \%\) of her annual salary.

Winters' federal income tax withheld during 2008 was \(\$ 820\) per month, plus \(\$ 2,480\) on her bonus check. State income tax witheld came to \(\$ 60\) per month, plus \(\$ 80\) on the bonus. The FICA tax withheld was \(8 \%\) of the first \(\$ 90,000\) of annual earnings. Winters authorized the following payroll deductions: United Fund contribution of \(1 \%\) of total earnings and life insurance of \(\$ 20\) per month.

Crossroads Bank incurred payroll tax expense on Winters for FICA tax of \(8 \%\) of the first \(\$ 90,000\) in total annual earnings. The bank also paid state unemployment tax of \(5.4 \%\) and federal unemployment tax of \(0.8 \%\) on the first \(\$ 7,000\) of annual earnings. The bank provided Winters with the following benefits: health insurance at a cost of \(\$ 40\) per month, and retirement benefits to be paid during her rerirement. During 2008, the bank's cost of Winters's retirement plan was \(\$ 4,000\).

Requirements 

1. Compute Winters' gross pay, payroll deductions, and net pay during 2008. Round all amounts to the nearest dollar.

2. Compute the bank's total 2008 payroll expense for Winters.

3. Make the journal entry to record the bank's expense for Winters' total earnings for the year, her payroll deductions, and net pay. Debit Salary Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required.