Question

Use the following information for the Exercises below. (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 $ 6,600 2,100 122, 300 a. b. c. Gross Pay for September $ 500 2,200 8,200 Exercise 9-5 Computing payroll taxes LO P2, P3 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 (9). (Round your answers to 2 decimal places.) a) Tax September Earnings Subiect to Tax Tax Rate Tax Amount FICA-Social Security FICA—Medicare FUTA SUTA Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security FICA—Medicare FUTA SUTA September Earnings Subiect to Tax Tax Rate Tax Amount Tax FICA—Social Security FICA—Medicare FUTA SUTA

Answer 1

a)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	500	6.20%	31.00
FICA-Medicare	500	1.45%	7.25
FUTA	400	0.60%	2.40
SUTA	400	5.40%	21.60
b)
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	2200	0.60%	13.20
SUTA	2200	5.40%	118.80
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	6100	6.20%	378.20
FICA-Medicare	8200	1.45%	118.90
FUTA	0	0.60%	0.00
SUTA	0	5.40%	0.00
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6600 = $400
Note: Earnings taxable for Social Security in (c) = 128400-122300 = $6100