Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000.

Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.

Carti Little works for PHILS BURGERS all year and earns a monthly salary of $12,100. There is no overtime pay. Lilys income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Carti elects to contribute 5% monthly to United Way. PHILS BURGERS also deducts $250 monthly for co-payment of the health insurance premium. As of September 30, Carti had $108,900 of cumulative earnings.

Requirements

1.Compute Cartys net pay for October.

2.Journalize the accrual of salaries expense and the payment related to the employment of Carti Little.