Payroll Tax Entries Below is a payroll sheet for Otis

Payroll Tax Entries Below is a payroll sheet for Otis Import Company for the month of
September2010. 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% F.I.C.A. tax on employee and employer
on a maximum of $102,000. In addition, 1.45% is charged both employer and employee for an
employee’s wages in excess of $102,000 per employee.(a) Complete the payroll sheet and
make the necessary entry to record the payment of the payroll.(b) Make the entry to record the
payroll tax expenses of Otis Import Company.(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
eachmonth.View Solution:
Payroll Tax Entries Below is a payroll sheet for Otis
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