Selected information from the payroll register of Wray's Drug Store for the week ended July 14, 20--, is shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.8%, both on the first $7,000 of earnings. Social Security tax on the employer is 6.2% on the first $106,800 of earnings, and Medicare tax is 1.45% on gross earnings.

REQUIRED
1. Calculate the total employer payroll taxes for these employees.
2. Prepare the journal entry to record the employer payroll taxes as of July 14,20--.

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Taxable Earnings Cumulative Pay Before Current Earnings $ 6,460 27,560 6,850 Current Weekly Earnings Compensation $ 645 1,025 Uncmployment Social Employce Name Ackers, Alice Conley, Dorothy Davis, James Lawrence, Kevin Rawlings, Judy Tanaka, Sumio Vadillo, Raynette Sccurity 565 2,875 985 835 3,540 16,350 22,320 104,960