 Then I like to go to alignment and do this center across like that. And so those are FICA taxes and I'll make them a different color to note that those are kind of linked together. And so let's make that like dark blue and then white, something like that. I'll make the whole thing bold so it's easier to see. And then I'm also gonna copy that and put it here. And I actually have an adjustment. I should make it go across this whole thing here. Let's format this again. Format cells align center across the three of them like that. All right, that's better. Mucho mejor. Okay, and then I'm gonna say, let's make these all black and white. I'm gonna go up top and say let's make this black and then white and let's center them. And then let's check the spelling. I'm sure I misspelled something, right? No, really? Serious? I think spell check is broken. That never happens. So we're gonna say, okay. And then our two employees, let's say our Adam Hamilton. I'm not sure if I spelled that right either, but that's what it says on Adam's W-4 form. So anyway, we're gonna say, there it is. Now the FIT, the federal income tax, is the employee's federal income tax, and it would be dependent on what they gave us on their W-4. So I can't just use a flat tax rate. This is the main tax, which is quite complicated in the United States because I have to look at tables to figure it out based on the information they provide us on like at the W-4. So I'm just gonna make up a number here. It's not, you know, it would be totally dependent on what they give us. So I'm just gonna make up 720 on the income tax. And then the social security is a flat tax to some degree. In other words, I could just say, if that's your earnings, I'm gonna say this is times 0.062. So I'm gonna say that that should be somewhat straightforward calculation, although once Adam hits the cap, there is a cap as well on social security. So then it gets messed up there too. So again, even though it looks simple right here, when you combine all this stuff together, it gets quite complex quite quickly, especially if you have multiple employees and then you've got caps and whatnot. And then the Medicare is gonna be equal to, it's also a flat tax. The gross earnings, which we're saying his gross earnings are 4583.33. And then we'll divide this or times this by 0.0145. Cause that's the Medicare rate, typically. And by the way, this number here is 60,000 a year, I think divided by 12. No, this is gonna be 55,000 divided by 12. That's where we're getting this number monthly pay. So we might pay people monthly, which is what we're gonna do here for the practice problem, or bi-weekly, semi-monthly, or weekly. And then I'm gonna make an adjustment to social security so I can tie out to my amount on our bank reconciliation, which we'll talk about later. So this is kind of a mess up here, but I need to tie out to that number. So we're gonna make a little bit of an adjustment. So the net pay then is gonna be equal to this minus this minus this minus this minus my adjustment. So it's gonna be the 357, 357, 270, that's gonna be the net check, which ties out to 357, 270, 357, 270. So that's the net check that's gonna come out of our checking account. These are withholdings that we're gonna have to take from the employee before they even get their money. And we're mandated to do that in the United States on the federal side. And you might also have state withholdings that are required as well, depending on what states you are in. And then you might have what's called like voluntary withholdings, such as benefit programs like a 401k plan or some Medicare, that kind of medical insurance and that kind of stuff that would be voluntary withholdings that they can opt into if they so choose. These are mandatory. All right, so then we've got the social security also on the employer side, we have to pay our portion of social security and Medicare. So I'm gonna say, these are FICA, these are gonna, I'm gonna say these are employer taxes. So they have to match social security and Medicare. So this is what they're paying over and above. And then I'm also gonna make an adjustment because I messed up when I did the calculations in the practice problem. So then we're gonna say Erica, Erica Smith, let's say. And we'll say that she earned 2,400 and her FIT, we're just gonna make up an FIT because it would be dependent on tables and what she told us on her W-4. But the social security somewhat straightforward would be the gross pay times 0.062. That's the employee portion and the Medicare is 2,400 times 0.0145 generally. And then I don't have an adjustment because I didn't mess that one up, I don't think. And then we're gonna say this equals the sum, let's do it this way, this equals this number minus the sum. Let's do it this way this time of these three, which is the same thing in essence of this, minus this, minus this, minus this. And then I can say, all right, the social security and Medicare over here is gonna have to match on the employer side. And then there we have that. So that looks good. Okay. And then I'm gonna put a box around this. I think I did that properly. And now let's say that's our only two employees. Now, this is something if we did inside of zero, that zero would basically make this data for us so they can help us put, and then it would post it automatically to the financial statements, but it also has to give this data to the clients in the form of a coupon stub or something like that. And it has to track this information on an employee by employee level on a both paycheck by paycheck, as well as year to date level to give it to the employee and to populate the forms that we need for reporting purposes, 941, 940, W2, W3, and so on. So again, if you did this externally, all of that stuff would be done by the third party provider and they might provide us with a report which would look something like this, which we would then have to just simply take and put into our system to make our financial statements correct. So let's imagine that's the case. What would the journal entry look like? If it was done internally, the journal entry done by Gusto within zero, if it's done externally, the journal entry we would have to put in the system based on this payroll register provided by the third party payroll provider so that we can get our financial statements correct but not needing all the detail. So I can imagine a journal entry for each employee and we can imagine combining the journal entry to one large journal entry. So for example, let's say that we have, we'll say that this is gonna be the date. I'm gonna add another right click and insert and I'll just put the date over here. This will be date. And then I'm gonna say this is gonna be for a journal entry and then I'm gonna say Adam, two tabs, and I'll skip one maybe and Erica, two tabs, skip one, total. Something like that. And so we're gonna say the date. I'm gonna make this a date field, home tab number, making it a short date. And this is gonna be on two,