Lori Waverly works for MRK all year and earns a monthly salary of $$12,000.$ There is no overtime pay. Lori's income tax withholding rate is $20\%$ of gross pay. In addition to payroll taxes, Lori elects to contribute $4\%$ monthly to United Way. MRK also deducts $$125$ monthly for co$-$payment of the health insurance premium. As of September $30,$ Lori had $$108,000$ of cumulative earnings.

i$.($Click the icon to view payroll tax rate information.$)$

Requirements

Compute Lori's net pay for October.

Journalize the accrual of salaries expense and the payments related to the employment of Lori Waverly.

More info

For all payroll calculations, use the following tax rates and round amounts to the nearest cent:

Employee: OASDI: $6\mathrm{.}2\%$ on first $$117,000$ earned; Medicare: $1\mathrm{.}45\%$ up to $$200,000,2\mathrm{.}35\%$ on earnings above $$200,000.$

Employer: OASDI: $6\mathrm{.}2\%$ on first $$117,000$ earned; Medicare: $1\mathrm{.}45\%$ on all earnings; FUTA: $0\mathrm{.}6\%$ on first $$7,000$ earned; SUTA: $5\mathrm{.}4\%$ on first $$7,000$ earned.