Question

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.	$6,100	$1,400
b.	2,800	2,900
c.	123,700	9,600

Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheid by the employer are $90 for this pay period.

Answer 1

Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
	September Earnings Subject to Tax	Tax Rate	Tax Amount
Federal income tax			90.00
FICA—Social Security	1400	6.20%	86.80
FICA—Medicare	1400	1.45%	20.30
Total taxes withheld			197.10
Date	General Journal	Debit	Credit
Sep 30	Salaries expense	1400.00
	FICA—Social Security taxes payable		86.80
	FICA—Medicare taxes payable		20.30
	Employee federal income taxes payable		90.00
	Salaries payable		1202.90

Answer 2

answer incorrect