P13-4 (Payroll Tax Entries) Below is a payroll sheet for Otis Import Company for the month of September 2014. The
company is allowed a		1.00%	unemployment compensation rate by the state; the federal unemployment
tax rate is	0.80%	and the maximum for both is		$7,000	. Assume a	10%	federal
income tax rate for all employees and a			7.65%	FICA tax on employee and employer on a maximum of
$110,100	. In addition,	1.45%	is charged both employer and employee for an employees wages in excess
of	$110,100	per employee.
Name	Earnings to Aug 31	September Earnings	Income Tax Withholding	F.I.C.A.	State U.C.	Federal U.C.
B.D. Williams	$6,800.00	$800.00
D. Raye	6,500.00	700.00
K. Baker	7,600.00	1,100.00
F. Lopez	13,600.00	1,900.00
A. Daniels	107,000.00	13,000.00
B. Kingston	112,000.00	16,000.00
Instructions:
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.
Name	Earnings to Aug. 31	September Earnings	Income Tax Withholding	FICA	Ref (optional to fill out)	State U.C.	Federal U.C.
B.D. Williams	6,800	800	Formula	Formula	c	Formula	Formula
D. Raye	6,500	700	Formula	Formula		Formula	Formula
K. Baker	7,600	1,100	Formula	Formula
F. Lopez	13,600	1,900	Formula	Formula
A. Daniels	107,000	13,000	Formula	Formula	a
B. Kingston	112,000	16,000	Formula	Formula	b
Total	253,500	33,500	Formula	Formula		Formula	Formula
a	Enter detail as desired (optional to fill out)
b	Enter detail as desired (optional to fill out)
c	Enter detail as desired (optional to fill out)
d	Enter detail as desired (optional to fill out)
	Account Title				Formula
	Account Title					Amount
	Account Title					Amount
	Account Title					Amount
(b) Make the entry to record the payroll tax expenses of Otis Import Company.
	Account Title				Formula
	Account Title					Amount
	Account Title					Amount
	Account Title					Amount
(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.
Dec 31	Account Title				Amount
	Account Title				Amount
	Account Title				Amount
	Account Title				Amount
	Account Title					Formula