The following is a payroll sheet for Headland Imports for the month of September 2020. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% 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 $128,400. In addition, 1.45% is charged both employer and employee for an employees wages in excess of $128,400 per employee.

Partially correct answer iconYour answer is partially correct.

Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.)

												Unemployment Tax
Name		Earnings to Aug. 31			September Earnings			Income Tax Withholding		FICA		State		Federal
B. D. Williams		$6,800			$800			$		$		$		$
D. Raye		6,400			700
K. Baker		7,600			1,000
F. Lopez		13,500			1,900
A. Daniels		118,200			14,000
B. Kingston		123,400			17,300
Total		$			$			$		$		$		$

Make the necessary entry to record the payment of the payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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Make the entry to record the payroll tax expenses of Headland Imports. (Round answers to 2 decimal places, e.g. 15.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Incorrect answer iconYour answer is incorrect.

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. (Round answers to 2 decimal places, e.g. 15.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Please explain the calculations.