Phaedra Hise Had Earned (Accumulated) Salary of $110000 Through November

Essay

Phaedra Hise had earned (accumulated) salary of $110000 through November 30. Her December salary amounted to $9800. Richard Tangard began employment on December 1 and will be paid his first month's salary of $7000 on December 31. Income tax withholding for December for each employee is as follows:
The following payroll tax rates are applicable: $\begin{array}{ll}\text { FICA tax on first } \$ 117,000 & 7.65 \%(1.45 \% \text { over } 117,000) \\\text { FUTA tax on first } \$ 7,000 & 6.2 \%^{*} \\\text { SUTA tax on first } \$ 7,000 & 5.4 \%\end{array}$
*Less a credit equal to the state unemployment contribution
Instructions
Record the payroll for the two employees at December 31 and record the employer's share of payroll tax expense for the December 31 payroll.