Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the first month of ATSs fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January.

Salaries expense	$600,000
Federal and state income tax withheld	120,000
Federal unemployment tax rate	0.80 %
State unemployment tax rate (after FUTA deduction)	5.40 %
Social security (FICA) tax rate	7.65 %

Required:

Record salaries expense and payroll tax expense for the January pay period.

1) Record the employee salary, withholdings, and salaries payable.

2) Record the employer payroll tax expense.

*For number 2, the journal entry has a choice of Unemployment Tax Payable - Federal and Unemployment Tax Payable - State.