Palto Industries pays its employees monthly. Payroll information follows:
1. The monthly gross salary for all its employees is $85,000. Palto Industries withholds 20% of the employees’ gross salary for federal taxes, 6.5% for state taxes, and 7.5% for Social Security (FICA) taxes.
2. Palto Industries incurs other employee-related costs. Specifically, the company must (1) match the Social Security taxes withheld from the employees, (2) contribute 3% of the employees’ gross pay to the employees’ pension fund, and (3) pay 5% of the employees’ gross pay for health insurance premiums on behalf of the employees.
What is the journal entry to be made by Palto Industries for the accrual of payroll taxes for their monthly payroll?