Question

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 06% and SUTA taxes are 2.9% of the first $7000 paid to its employee Gross Pay for s 5,300 19,000 113,000 2,9e0 8,800 for each of these four taxes as applied to the employee's gross earnings for September under each of three Compute BMX's amounts separate situations (a). (b), and (c). (Round your answers to 2 decimal places.) Subject to Tax FUTA Earnings Tax Rate Tax

Answer 1

	a)
	Tax				September earnings subject to tax	Tax rate	Tax amount
	FICA-Social security				2600	6.20%	161.2
	FICA-Medicare				2600	1.45%	37.7
	FUTA				1700	0.60%	10.2
					(7000-5300)
	SUTA				1700	2.90%	49.3
					(7000-5300)
	b)
	Tax				September earnings subject to tax	Tax rate	Tax amount
	FICA-Social security				2900	6.20%	179.8
	FICA-Medicare				2900	1.45%	42.05
	FUTA				0	0.60%	0
	SUTA				0	2.90%	0
	Since, b has already exhausted the limit of $ 7000, No FUTA and SUTA
	c)
	Tax				September earnings subject to tax	Tax rate	Tax amount
	FICA-Social security				5500	6.20%	341
					(118500-113000)
	FICA-Medicare				5500	1.45%	79.75
					(118500-113000)
	FUTA				0	0.60%	0
	SUTA				0	2.90%	0
	Since, c has already exhausted the limit of $ 7000, No FUTA and SUTA