Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee. FUTA SUTA b) Tax Gross Pay through August $ 6,700 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 FICA Social Security FICA-Medicare 18,500 112,500 FUTA SUTA c) Tax FICA Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare Gross Pay for September $400 2,400 8,300 September Earnings Subject to Tax 400.00 400.00 S September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate Tax Amount 6.20% $ 1.45% 0.60% 2.90% Tax Rate Tax Rate 24.80 5.80 Tax Amount Tax Amount

Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee. FUTA SUTA b) Tax Gross Pay through August $ 6,700 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 FICA Social Security FICA-Medicare 18,500 112,500 FUTA SUTA c) Tax FICA Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare Gross Pay for September $400 2,400 8,300 September Earnings Subject to Tax 400.00 400.00 S September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate Tax Amount 6.20% $ 1.45% 0.60% 2.90% Tax Rate Tax Rate 24.80 5.80 Tax Amount Tax Amount

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 31P

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