Chapter 13, Problem 13.8P

Payroll Taxes Payable. Jackson Corporation employs 45 production workers and pays them all the same salary Jackson employs 10 administrative staff personnel and pays them all the same salary The following annual information is available for each employee group.

Description	Production	Administrative
Salaries and wages	$4,500,000	$1,050,675
Federal income tax rate	18%	22%
State and local income tax rate	6%	9%
Federal unemployment tax rate - effective	25%	2.5%
State unemployment tax - effective (wage cap per employee = $7,000)	1.5%	1.5%

Required

1. a. Prepare the journal entry to record the annual payroll.
2. b. Prepare the journal entry to pay the liability for accrued salaries.
3. c. Prepare the journal entry necessary to record Jackson’s payroll tax expense for the annual payroll.