Bailey Dry Cleaners has six employees who were paid the following wages during 2016:

Frank Johnson	$27,000
Bill Long	18,000
Duff Morse	125,000
Laura Stewart	28,000
Cindy Sharpe	26,000
Melissa Ledbetter	20,000
Total	$244,000

The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. The federal unemployment rate is 0.6%. The maximum unemployment wages per employee are $7,000 for both the state and the federal government. Income tax withholdings of 20% are applied to all employees. A F.I.C.A. tax rate of 8% on the employee and 8% on the employer is applied to the first $117,000 of each employees wages.

	Required:
1.	Calculate the amount of payroll taxes to be paid by Bailey.
2.	Prepare the journal entries to record the payment of payroll and the payroll tax expense.

Calculate the amount of payroll taxes to be paid by Bailey.

Baileys total payroll taxes equal