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P13-4 (LO1) Payroll Tax Entries The following is a payroll sheet for Otis Imports for the month of September 2020. Selected information follows. Unemployment compensation

P13-4 (LO1) Payroll Tax Entries
The following is a payroll sheet for Otis Imports for the month of September 2020. Selected information follows.
Unemployment compensation rate allowed by the state 1.00%
Unemployment compensation rate for the federal government 0.80%
Maximum wages for unemployment for federal and state governments $ 7,000
Federal income tax rate for all employees 10%
FICA tax on employee and employer 7.65%
Maximum wages for FICA tax $ 128,400
Employer and employee rate for an employees excess wages 1.45%
Maximum wages per employee to avoid the excess wages charge $ 128,400
Name Earnings to Aug 31 Sept Earnings Income Tax Withholding F.I.C.A. State U.C. Federal U.C.
B.D. Williams $ 6,800 $ 800 $ 61
D. Raye 6,500 700
K. Baker 7,600 1,100
F. Lopez 13,600 1,900
A. Daniels 107,000 13,000
B. Kingston 112,000 16,000
Instructions:
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.
Name Earnings to Aug 31 Sept Earnings Income Tax Withholding F.I.C.A. State U.C. Federal U.C.
B.D. Williams $ 6,800 $ 800
D. Raye 6,500 700
K. Baker 7,600 1,100
F. Lopez 13,600 1,900
A. Daniels 107,000 13,000
B. Kingston 112,000 16,000
Total
Debit Credit
(b) Make the entry to record the payroll tax expenses of Otis Import Company.
Debit Credit
(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.
Debit Credit

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