P$12\mathrm{.}3$B Modified $($LO $1)($Payroll Tax Entries$)$ Yellow Company pays its office employee payroll weekly.

Below is a partial list of employees and their payroll data for June. Vacation pay for June is also listed.

Assume that:

The federal income tax withheld is $12\%$ of wages.

Union dues withheld are $1\%$ of wages.

The state unemployment tax rate is $2\mathrm{.}5\%$ and the federal is $0\mathrm{.}8\%,$ both on the first $$7,000$ of

total wages for the year. The employer's additional tax liability is $$0$ once the employees' wages

are greater than $$7,000.$

Both employers and employees are subject to $6\mathrm{.}2\%$ taxes for OASDI $($i$.$e$.,$ Social Security$)$ up to

an employee's total wages of $$168,600$ per year of earned income. Above this amount, no

wages are subject to taxation for OASDI.

Both employers and employees are subject to $1\mathrm{.}45\%$ taxes for Medicare. If the employee earns

income greater than $$200,000$ in any year, both the employer and the employee are subject to

an Additional Medicare Tax of $0\mathrm{.}9\%(2\mathrm{.}35\%$ total$)$ on all wages above this threshold.

Mark James and Christina Peng both take their vacations during the second and third weeks of

June.

Instructions

Make the journal entries necessary for each of the four June payrolls. The entries for the employees'

payroll and for the company's liability based on that payroll are made separately.

Also make the entry to record the monthly payment of accrued payroll liabilities $($taxes and union dues$)$

on June $30.$