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 $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 $1,500 2,850 9,500 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 withheld by the employer are 570 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be General withheld From Gross Pay Journal The employee's federal income taxes withheld by the employer are 570 for this pay period. Compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)

Answer 1

Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
	September Earnings Subject to Tax	Tax Rate	Tax Amount
Federal income tax			70.00
FICA—Social Security	1500	6.20%	93.00
FICA—Medicare	1500	1.45%	21.75
Total taxes withheld			184.75
Date	General Journal	Debit	Credit
Sep 30	Salaries expense	1500.00
	FICA—Social Security taxes payable		93.00
	FICA—Medicare taxes payable		21.75
	Employee federal income taxes payable		70.00
	Salaries payable		1315.25