Question

Chapter 09 Homework Saved Required information Part 1 of 3 [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. polnts Gross Pay through August 31 5,100 3,100 Gross Pay for September $2,200 2,700 8,600 а. b. еВook 120,900 C. Hint 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. Leave no cells blank.) Print a) September Earnings Subject to Tax Tax Rate Tax Amount References Тax FICA-Social Security FICA-Medicare FUTA SUTA b) September Earnings Subject to Tax Тax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA c) September Earnings Subject to Tax Tax Amount Тax Tax Rate FICA-Social Security FICA-Medicare FUTA SUTA 00

Answer 1

a)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2200	6.20%	136.40
FICA-Medicare	2200	1.45%	31.90
FUTA	1900	3.10%	58.90
SUTA	1900	2.90%	55.10
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2700	6.20%	167.40
FICA-Medicare	2700	1.45%	39.15
FUTA	2700	3.10%	83.70
SUTA	2700	2.90%	78.30
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	6300	6.20%	390.60
FICA-Medicare	8600	1.45%	124.70
FUTA	0	3.10%	0.00
SUTA	0	2.90%	0.00
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-5100 = $1900
Note: Earnings taxable for Social Security in (c) = 127200-120900 = $6300
2
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
	September Earnings Subject to Tax	Tax Rate	Tax Amount
Federal income tax			80.00
FICA—Social Security	2200	6.20%	136.40
FICA—Medicare	2200	1.45%	31.90
Total taxes withheld			248.30
Date	General Journal	Debit	Credit
Sep 30	Salaries expense	2200.00
	FICA—Social Security taxes payable		136.40
	FICA—Medicare taxes payable		31.90
	Employee federal income taxes payable		80.00
	Salaries payable		1951.70
3
Employer Payroll taxes	September earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	2200	6.20%	136.40
FICA-Medicare	2200	1.45%	31.90
FUTA	1900	3.10%	58.90
SUTA	1900	2.90%	55.10
Total Payroll Taxes Expense			282.30
Date	General Journal	Debit	Credit
Sep. 30	Payroll taxes expense	282.30
	FICA—Social security taxes payable		136.40
	FICA—Medicare taxes payable		31.90
	Federal unemployment taxes payable		58.90
	State unemployment taxes payable		55.10