Benny Hill had earned (accumulated) salary of $96,000 through November 30. Her December salary amounted to $9,000. Pam Lane began employment on December 1 and will be paid her first month's salary of $3,500 on December 31. Income tax withholding for December for each employee is as follows:

Kim Benny Pam Lane
Federal Income Tax $2,200 $700
State Income Tax 250 175

The following payroll tax rates are applicable:

FICA tax on first $100,000 8 %
FUTA tax on first $7,000 0.8 %
SUTA tax on first $7,000 5.4 %

Instructions

Record the payroll for the two employees at December 31 and record the employer's share of payroll tax expense for the December 31 payroll. Two journal entries required.