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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.

Journal
DateDescriptionDebitCredit