Problem - The payroll of Cullumber Company for September 2016 is as follows.

Total payroll was $434,000, of which $108,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $423,000. Income taxes in the amount of $86,300 were withheld, as was $8,100 in union dues. The state unemployment tax is 3.5%, but Cullumber Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. No employee for Cullumber makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit.

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.