Maya earns a salary of $7,500 per month during the year. FICA taxes are 7.65% on the first $117,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $25,600 was withheld for federal income taxes and $5,700 was withheld for state income taxes.

Instructions

(a) Prepare a journal entry summarizing the payment of Maya's total salary during the year.

(b) Prepare a journal entry summarizing the employer payroll tax expense on Mayas salary for the year.

(c) Determine the cost of employing Maya for the year.