Payroll Accounting and Discussion of Labor Costs

Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll:

Item	Amount
Monthly salaries	$237,480
Hourly wages	585,000
FICA:
Social Security (both employee and employer)	6.20%
Medicare (both employee and employer)	1.45%
Withholding for federal income taxes	$108,500
Federal unemployment taxes	1,200
State unemployment taxes	4,000

Blitzen will pay both the employer's taxes and the taxes withheld on April 15.

Required:

1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest penny.

2)What amount does Blitzen pay in excess of gross pay as a result of taxes? (Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.)

4) Conceptual Connection: If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places.