I am looking for help to solve this problem. In question 2 there are one more part that asks what is the percentage of gross pay. Please walk me through the steps to get this figured out.

Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll:

ItemAmount

Monthly salaries .................... $237,480

Hourly wages ..................... 585,000

FICA:

Social Security (both Employee & Employer) .........6.20%

Medicare (both Employee & Employer) ............1.45%

Withholding for income taxes..............$108,500

Federal unemployment taxes .................1,200

State unemployment taxes ..................4,000

Blitzen will pay both the employers taxes and the taxes withheld on April 15.

Required:

1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities.

2. What is the employees gross pay? What amount does Blitzen pay in excess of gross pay as a result of taxes?

3. How much is the employees net pay as a percentage of total payroll related expenses?

4. If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen?