First Street Restaurant incurred salaries expense of $60,000 for 2018. The payroll tax expense includes employer...

First Street Restaurant incurred salaries expense of $60,000 for 2018. The payroll tax expense includes employer FICA tax, state unemployment tax and federal unemployment tax. Year-to-date earnings do not exceed $118,500. Of the total salaries, $17,000 is subject to unemployment tax. Currently, state unemployment tax is 5.4% and federal unemployment tax is 0.6%. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,500), life insurance (cost to the company, $700), and retirement benefits (cost to the company, 10% of salaries expense).

Journalize First Street's expenses for employee benefits and for payroll taxes. Explanations are not required.

BONUS (worth 10 pts): Journalize the payment of the payroll taxes (Employer and Employee portion).

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