On September 30, 2020, the Chart House Restaurant has two chefs, Gene Barry and Charlene Milton, who each earn $10 per hour and time and a half for all overtime hours. From their pay, chart House deducts 15% for federal income tax, 3% for state income tax, and 7.65% for FICA (Social Security on wages up to a maximum of $130,500). Before this week, Barry has earned $4,900 and Milton has earned $118,000. Chart House withholds $24 per week for each employees pay for union dues. In the current week, Barry worked 50 hours and Milton worked 52 hours.

Chart House must also contribute to FICA on behalf of the employees. In addition, Chart House must pay 5.4% for state unemployment tax, and .8% for federal unemployment tax on the first $7,000 paid to each employee.

Required:

1. Compute gross pay and net pay for both chefs.
2. Assume that the two chefs are Chart Houses only employees. Prepare Chart Houses journal entries to record both salary and payroll tax expense (including fringe benefits) as September 30, 2017.