Question

CH 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 31 $ 6,100 1,700 119,700 Gross Pay for September $1,400 3,700 9,600 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.) Tax September Earnings Subject to Tax Tax Rate Tax Amount

a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security $1,400.00 6.20% $86.80 FICA—Medicare 1,400.00 1.45% 20.30 FUTA 900.00 3.10% 27.90 SUTA 900.00 2.90% 26.10 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security $3,700.00 6.20% $229.40 FICA—Medicare 3,700.00 1.45% 53.65 FUTA 3.10% SUTA 2.90% c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security 6.20% FICA—Medicare 9,600 1.45% 139.20 FUTA 3.10% SUTA 2.90%

Answer 1

a)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	1400	6.20%	86.80
FICA-Medicare	1400	1.45%	20.30
FUTA	900	3.10%	27.90
SUTA	900	2.90%	26.10
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	3700	6.20%	229.40
FICA-Medicare	3700	1.45%	53.65
FUTA	3700	3.10%	114.70
SUTA	3700	2.90%	107.30
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	7500	6.20%	465.00
FICA-Medicare	9600	1.45%	139.20
FUTA	0	3.10%	0.00
SUTA	0	2.90%	0.00
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6100 = $900
Note: Earnings taxable for Social Security in (c) = 127200-119700 = $7500