The total payroll of Waters Company for the month of October was $316,483, of which $58,593 represented amounts paid in excess of $113,700 to certain employees. $203,093 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $21,524 of federal income taxes were withheld. Assume the state unemployment tax is 5%, the federal unemployment tax is 1.14%, and the current F.I.C.A. tax is 7.04% on an employee’s wages to $113,700 and 1.6% in excess of $113,700. What amount should Waters record as payroll tax expense?