The following information applies to the questions displayed
below.]
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 | 800 | 6.20% | 49.60 |
FICA-Medicare | 800 | 1.45% | 11.60 |
FUTA | 600 | 0.60% | 3.60 |
SUTA | 600 | 5.40% | 32.40 |
b) | |||
Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
FICA-Social Security | 2100 | 6.20% | 130.20 |
FICA-Medicare | 2100 | 1.45% | 30.45 |
FUTA | 2100 | 0.60% | 12.60 |
SUTA | 2100 | 5.40% | 113.40 |
c) | |||
Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
FICA-Social Security | 6300 | 6.20% | 390.60 |
FICA-Medicare | 8000 | 1.45% | 116.00 |
FUTA | 0 | 0.60% | 0.00 |
SUTA | 0 | 5.40% | 0.00 |
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6400 = $600 | |||
Note: Earnings taxable for Social Security in (c) = 128400-122100 = $6300 |
The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social...
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. $ 6,700 $ 400 b. 2,150 2,250 c. 122,400 8,300 Compute BMX’s amounts for each of these four taxes as applied to...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $127,200 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 3.1% and SUTA taxes are 2.9% 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. 120,900 8,000 Compute BMX’s amounts for each of these four taxes as applied to...
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. Gross Pay through August Gross Pay for September a. $5,400 $2,400 b. 19,100 3,000 c. 113,100 8,900 Compute BMX’s amounts for each of these four taxes...
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. $ 5,900 $ 1,400 b. 2,700 2,800 c. 123,500 9,400 Compute BMX’s amounts for each of these four taxes as applied to...
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 $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.
$
5,900
$
1,400
b.
2,700
2,800
c.
123,500
9,400
Compute...
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 $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 $ 6,100 2,800 123, 700 Gross Pay for September $1,400 2,900 9,600 a. b. C. Compute...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $127,200 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 3.1% and SUTA taxes are 2.9% 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. 120,900 8,000 Assuming situation a, prepare the employer’s September 30 journal entries to record...
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 31Gross Pay for Septembera.$6,100$1,400b.2,8002,900c.123,7009,600Assuming 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...
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 $127.200 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, Its FUTA taxes are 3.1% and SUTA taxes are 2.9% of the first $7,000 paid to its employee Gross Pay through August $ 6,400 2,000 120, 900 Gross Pay for September S 800 2,100 8,000 c. Compute BMX's amounts...
Check my work 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. Gross Pay Gross Pay for ugh AugustSeptember $ 6,400 18,200 112,200 800 2,100 8,000 b. Exercise 9-5 Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of...