The total payroll of Waters Company for the month of October was $319,526, of which $50,976 represented amounts paid in excess of $113,700 to certain employees. $206,544 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $22,969 of federal income taxes were withheld. Assume the state unemployment tax is 5%, the federal unemployment tax is 1.04%, and the current F.I.C.A. tax is 7.43% on an employees wages to $113,700 and 1.8% in excess of $113,700. What amount should Waters record as payroll tax expense?