ABC Company has two employees. Last week the closing of the weekly payroll period occurred. The first employee earns $7.25 per hour, worked 38 hours (including two during the lunch period), has 10% Income Tax withheld, and has earned wages to date of $6,100. The second employee earns $8.50 per hour, worked 48 hours, has 10% Income Tax withheld, and earned wages of $5,500. Company ABC is required to pay 5.4% for State Unemployment (SUTA).

1- Determine the net salary of the employees:

	Gross salary	Social security	Medicare	Inability	Contribution on entry	Net salary
Employee 1
Employee 2
Total

Gross Salary Computation: Employee 1: Employee 2:

	FUTA	SUTA	Social security	Medicare	Inability
Employee 1
Employee 2
Total

2- Make accounting entries related to payroll:

a. Total retentions to employees

Date	Accounts and Description	Ref	Debit	Credit

b. Employer contributions

Date	Accounts and Description	Ref	Debit	Credit