On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from employee's salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,160 of federal income taxes, $1440 of medical insurance deductions, and $820 of union dues. No employee earned more than $7000 in this first period.

1. Calculate below the amounts for each of the four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 4% of the first $7000 paid each employee. The federal unemployment tax rate is 0.60%.

2. Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities.

3. Prepare the journal entry to record Regis's (employer) payroll taxes resulting from the January 8 payroll. Regis's merit rating reduces its state unemployment tax rate to 4% of the first $7000 paid each employee. The federal unemployment tax rate is 0.60%.

(Info Attached)

Part 1 January 8 earnings Tax Rate Tax Amount Subject to Tax FICA--Social Security... $ 88,600 6.20% $ 5,493.20 FICAMedicare........... 88,600 1.45 1,284.70 FUTA............................. 88,600 0.60 531.60 SUTA............................. 88,600 4.00 3,544 Part 2 Jan. 8 Sales Salaries Expense..........................................27,760 Office Salaries Expense.........................................60,840 FICASocial Security Taxes Payable.............. FICAMedicare Taxes Payable........................ Employee Fed. Income Taxes Payable............ Employee Med. Insurance Payable.................. Employee Union Dues Payable........................ Salaries Payable................................................ 5,493.20 1,284.70 13,160 1,440 820 66,402.10 Part 3 Jan. 8 Payroll Taxes Expense........................................... 10,853.50 FICASocial Security Taxes Payable.............. FICAMedicare Taxes Payable........................ State Unemployment Taxes Payable............... Federal Unemployment Taxes Payable.............. 5,493.20 1,284.70 531.60 3,544