Journal entries for payroll and payroll costs Arbocodiel Company employs five office employees whose monthly pay is as follows:

In addition to the above salaries, Arnold earned a $300 bonus and Elmire a $400 bonus during the first quarter of the year. Income tax withholdings average 22 percent of salary for federal and 2 percent of salary for state income taxes. The FICA rate is 7 percent of the first $36,000 of salary. The company is subject to total unemployment tax of 3.4 percent, of which .7 percent is federal and the remainder is for the state. Only the first $6,000 of each employee's salary is subject to FUTA tax. The monthly pension expense of the company is $840. No bonuses have been earned by any of the employees in April.

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Arnold ... Bonser... $2,600 1,200 Cortie 900 Dilberg 1,500 Elmire 1,800