Grady Company has the following data available for its March 31, 2013 payroll:

• Gross wages: $180,000
• Federal Income Taxes Withheld: $43,200

The entire amount of gross wages is subject to FICA withholdings and FICA matching, each at 7.65% (Social Security of 6.2% and Medicare of 1.45%). The federal unemployment tax rate is 3.5%. All wages are subject to the federal unemployment tax (FUTA). There is no state unemployment tax.

1. Calculate the FICA withholdings. Please show your calculations.

2. Calculate FUTA. Please show your calculations.

3. Calculate net wages. Please show your work.

4.Prepare the journal entry to record the wages and withholdings.

5.Write the journal entry for payroll taxes.

6. What is the total cost of the employees to the company (show your calculations).