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Below is a payroll sheet for Otis Import Company for the month of September 2017. The company is allowed a 5.40% unemployment compensation rate by

Below is a payroll sheet for Otis Import Company for the month of September 2017. 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 $9,000 . Assume a 12% 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 $8,600 $900
D. Raye 8,100 750
K. Baker 9,800 1,200
F. Lopez 13,600 1,800
A. Daniels 109,000 12,600
B. Kingston 113,000 18,000

Instructions:

(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll

(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.

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