Instructions

Tax rates assumed:

Social security $6\%$ State unemployment $($employer only$)5\mathrm{.}4\%$

Medicare $,1\mathrm{.}5\%$ Federal unemployment $($employer only$)0\mathrm{.}8\%$

Required:

Assuming that the payroll related to the first full week of the year and was paid on lanuary $7,$ journalize the following entries:

a$.$ January $7,$ to record the payroll.

b$.$ January $7,$ to record the employer's payroll taxes on the payroll for the first week of the year. Since it is a new fiscal year, all $$667,000$ in salares is subject to unemployment compensation taxes.

Assumung that the payroll related to the last week of the year and was paid on December $31,$ joumalize the following entries:

a$.$ December $31,$ to record the payroll.

b$.$ December $31,$ to record the employer's payroll taxes on the payroll for the last week of the year. Of the total payroll for the last week ofInstructions

$\backslash$table$[[$Salaries:$,,$Deductions:,$],[$Sales salaries,$$325,000,$Income tax withheld,$$116,600$