National incurred payroll tax expense on Welch for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Louis Welch is general manager of National Salons. During 2018, Welch worked for the company all year at a $11,800 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Welch's federal income tax withheld during 2018 was $1,770 per month, plus $5,664 on his bonus check. State income tax withheld came to $140 per month, plus $110 on the bonus. FICA tax was withheld on the annual earnings. Welch authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $25 per month Read the requirements. More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $ 118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. A Requirements 1. Compute Welch's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. 2. Compute National's total 2018 payroll tax expense for Welch. 3. Make the journal entry to record National's expense for Welch's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of National's payroll tax expense for Welch's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes