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Question 1
For all payroll calculations, use the following tax rates and round amounts to the nearest cent.

Employee: OASDI: 6.9% on first $120,000 earned; Medicare: 1.07% up to $100,000, 2.14% on earnings above $100,000.

Employer: OASDI: 6.9% on first $120,000 earned; Medicare: 1.07%; FUTA: 0.7% on first $8,000 earned; SUTA: 5.8% on first $8,000 earned.

Orlando Company has monthly salaries of $18,000. Assume Orlando Company pays all the standard payroll taxes and no employees have reached the payroll tax limits.

Journalize the accrual and payment of employer payroll taxes for Orlando Company.