Amy Tan Earns $7,200 Per Month as the Only Employee

question 28

Essay

Amy Tan earns $7,200 per month as the only employee of a small shop. FICA taxes on her salary are 7.65 percent of the first $50,000. Federal income taxes are withheld at the rate of 30 percent and state income taxes at the rate of 7 percent. Her employer is subject to 0.8 percent FUTA tax and 3.0 percent SUTA tax.
Prepare the journal entries to be made by her employer for the month of January. (Round to the nearest dollar.)