a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 $6,400 2,700 133,300 FUTA SUTA Exercise 9-7 (Algo) 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) Note: Round your answers to 2 decimal places. FICA-Social Security FICA-Medicare Gross Pay for September $1,700 2,800 9,900 September Earnings Subject to Tax 1.700.00 1.700.00 600.00 600 00 Tax Rate 620 % 1:45% 0.60% 5.40% Tax Amount $ 105.40 24.65 3.60 32.40
a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 $6,400 2,700 133,300 FUTA SUTA Exercise 9-7 (Algo) 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) Note: Round your answers to 2 decimal places. FICA-Social Security FICA-Medicare Gross Pay for September $1,700 2,800 9,900 September Earnings Subject to Tax 1.700.00 1.700.00 600.00 600 00 Tax Rate 620 % 1:45% 0.60% 5.40% Tax Amount $ 105.40 24.65 3.60 32.40
Chapter9: Payroll, Estimated Payments, And Retirement Plans
Section: Chapter Questions
Problem 16MCQ
Related questions
Question
![(a)
Tax
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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.
noo
FUTA
SUTA
Gross Pay through
August 31
$6,400
2,700
133,300
Exercise 9-7 (Algo) 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)
Note: Round your answers to 2 decimal places.
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 1,700
2,800
9,900
$
September Earnings
Subject to Tax
1.700.00
1.700.00
600.00
600 00
Tax Rate
Tax Amount
6.20% $
1:45%
0.60%
5.40%
105,40
24 65
3.60
32.40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4e745e2-9a22-4029-839e-b3cc85a682fe%2Ffd1ab39d-4240-4af0-858b-856aeaf3f9b2%2F5for7el_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(a)
Tax
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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.
noo
FUTA
SUTA
Gross Pay through
August 31
$6,400
2,700
133,300
Exercise 9-7 (Algo) 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)
Note: Round your answers to 2 decimal places.
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 1,700
2,800
9,900
$
September Earnings
Subject to Tax
1.700.00
1.700.00
600.00
600 00
Tax Rate
Tax Amount
6.20% $
1:45%
0.60%
5.40%
105,40
24 65
3.60
32.40
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