PAYROLL TAXES
Hernandez Builders has a gross payroll for June amounting to $400,000. The following amounts have been withheld:
Federal income tax $70,000
State income tax 30,000
Social Security 9,000
Medicare 3,000
Charitable contributions 1% of gross pay
Union dues 2% of gross pay
Also, the unemployment tax rate is 3 percent, and applies to all but $50,000 of the gross payroll.
Required:
1. What is the amount of net pay recorded by Hernandez?
2. Make the journal entry to record the payroll.