Happy Landscaping has two employees who are paid every two weeks. For the current pay period, John Smith earns $6,500 and Mary Jones earns $2,800. In addition to social security and medicare withholding, they also have the following amounts withheld: federal income tax 20%, state income tax 3%, medical insurance 15% and union dues 1%. Prepare the journal entries for the employees, employers, payment to employees and payment of payroll liabilities.