Required information 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 $118,500 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 2.9% of the first $7,000 paid to its employee. Gross Pay through August Gross Pay for September a. $ 6,800 $ 700 b. 18,600 2,500 c. 112,600 8,400 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 (c). (Round your answers to 2 decimal places.)
a) | |||
Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
FICA-Social Security | 700 | 6.20% | 43.40 |
FICA-Medicare | 700 | 1.45% | 10.15 |
FUTA | 200 | 0.60% | 1.20 |
SUTA | 200 | 2.90% | 5.80 |
b) | |||
Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
FICA-Social Security | 2500 | 6.20% | 155.00 |
FICA-Medicare | 2500 | 1.45% | 36.25 |
FUTA | 0 | 0.60% | 0.00 |
SUTA | 0 | 2.90% | 0.00 |
c) | |||
Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
FICA-Social Security | 5900 | 6.20% | 365.80 |
FICA-Medicare | 8400 | 1.45% | 121.80 |
FUTA | 0 | 0.60% | 0.00 |
SUTA | 0 | 2.90% | 0.00 |
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6800 = $200 | |||
Note: Earnings taxable for Social Security in (c) = 118500-112600 = $5900 |
Required information Use the following information for the Exercises below. [The following information applies to the...
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 $118,500 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 2.9% of the first $7,000 paid to its employee. Gross Pay through August Gross Pay for September a. $5,400 $2,400 b. 19,100 3,000 c. 113,100 8,900 Compute BMX’s amounts for each of these four taxes...
Required information 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 $118,500 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 2.9% of the first $7,000 paid to its employee a. b. C. Gross Pay through August $5,400 Gross Pay for September $2,400...
Required information
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
Gross Pay for September
a.
$
6,100
$...
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...
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...
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 $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX. its FUTA taxes are 06% and SUTA taxes are 2.9% of the first $7000 paid to its employee Gross Pay for s 5,300 19,000 113,000 2,9e0 8,800 for each of these four taxes as applied to the employee's gross...
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 Gross Pay for September a. $ 6,400 $ 800 b. 2,000 2,100 c. 122,100 8,000 Compute BMX’s amounts...
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 Gross Pay for September $ $ 6,400 2,000 120.900 800 2. 100 8,000 c. Assuming situation a,...
Saved Required Information 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 employees Gross Pay through Exercise 9-7 Payroll-related journal entries LO P3 Exercise 9-7...
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 1.66 points 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. eBook Hint Print References Gross Pay through August 31 $ 6,400...