Question

lems Saved Help y work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate com 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 $ 6,000 2,750 123,600 Gross Pay for September $1,580 2,850 9.500 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three eparate situations (a), (b), and (c). (Round your answers to 2 decimal places.) ® Answer is complete but not entirely correct. < Prey 2 3 4 of 5 !!! Score answer >

Answer 1

a)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	1500	6.20%	93.00
FICA-Medicare	1500	1.45%	21.75
FUTA	1000	0.60%	6.00
SUTA	1000	5.40%	54.00
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2850	6.20%	176.70
FICA-Medicare	2850	1.45%	41.33
FUTA	2850	0.60%	17.10
SUTA	2850	5.40%	153.90
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	4800	6.20%	297.60
FICA-Medicare	9500	1.45%	137.75
FUTA	0	0.60%	0.00
SUTA	0	5.40%	0.00
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6000 = $1000
Note: Earnings taxable for Social Security in (c) = 128400-123600 = $4800