Below is a payroll sheet for Otis Import Company for the month of September 2015. The
company is allowed a		5.40%	unemployment compensation rate by the state; the federal unemployment
tax rate is	0.60%	and the maximum for both is		$7,000	. Assume a	10%	federal
income tax rate for all employees and a			7.65%	FICA tax on employee and employer on a maximum of
$118,500	. In addition,	1.45%	is charged both employer and employee for an employees wages in excess
of	$118,500	per employee.
Name	Earnings to Aug 31	September Earnings	Income Tax Withholding	F.I.C.A.	State U.C.	Federal U.C.
B.D. Williams	$6,600	$800
D. Raye	6,300	700
K. Baker	7,600	1,100
F. Lopez	13,600	1,900
A. Daniels	107,000	13,000
B. Kingston	112,000	16,000
Instructions:
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.
Name	Earnings to Aug. 31	September Earnings	Income Tax Withholding	FICA	State U.C.	Federal U.C.
B.D. Williams	$6,800	$800
D. Raye	6,500	700
K. Baker	7,600	1,100
F. Lopez	13,600	1,900
A. Daniels	107,000	13,000
B. Kingston	112,000	16,000
Total	$253,500	$33,500
(b) Make the entry to record the payroll tax expenses of Otis Import Company.
(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.