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 $ 6,100 2,800 123, 700 Gross Pay for September $1,400 2,900 9,600 a. b. C. 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.)

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	0.60%	5.40
SUTA	900	5.40%	48.60
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2900	6.20%	179.80
FICA-Medicare	2900	1.45%	42.05
FUTA	2900	0.60%	17.40
SUTA	2900	5.40%	156.60
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	4700	6.20%	291.40
FICA-Medicare	9600	1.45%	139.20
FUTA	0	0.60%	0.00
SUTA	0	5.40%	0.00
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6100 = $900
Note: Earnings taxable for Social Security in (c) = 128400-123700 = $4700