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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.     Gross Pay through August 31   Gross Pay for September a.   $ 6,400         $ 800     b.     2,000           2,100     c.     122,100           8,000         Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)     a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security       FICA—Medicare       FUTA       SUTA       b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security       FICA—Medicare       FUTA       SUTA       c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security       FICA—Medicare       FUTA       SUTA

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.     Gross Pay through August 31   Gross Pay for September a.   $ 6,400         $ 800     b.     2,000           2,100     c.     122,100           8,000         Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)     a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security       FICA—Medicare       FUTA       SUTA       b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security       FICA—Medicare       FUTA       SUTA       c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security       FICA—Medicare       FUTA       SUTA

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1CP
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.

 

  Gross Pay through
August 31		   Gross Pay for
September
a.   $ 6,400         $ 800    
b.     2,000           2,100    
c.     122,100           8,000    
 

 

Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)

 
 
a)
Tax September Earnings Subject to Tax Tax Rate Tax Amount
FICA—Social Security      
FICA—Medicare      
FUTA      
SUTA      
b)
Tax September Earnings Subject to Tax Tax Rate Tax Amount
FICA—Social Security      
FICA—Medicare      
FUTA      
SUTA      
c)
Tax September Earnings Subject to Tax Tax Rate Tax Amount
FICA—Social Security      
FICA—Medicare      
FUTA      
SUTA      
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