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a) Tax FUTA SUTA b) 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. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of thre separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. FICA-Social Security FICA-Medicare a b. c. FUTA SUTA c) Tax Gross Pay through August 31 $ 6,100 2,100 133,000 FICA-Social Security FICA-Medicare FUTA QUTA FICA-Social Security FICA-Medicare September Earnings Subject to Tax $ Gross Pay for September $ 1,400 2,200 9,600 $ September Earnings Subject to Tax 136.40 31.90 13.20 118.80 86.80 20.30 0.00 0.00 $ September Earnings Subject to Tax 0.00 139.20 0 Tax Rate Tax Amount 6.20% $ 1.45% 0.60% 5.40% Tax Rate 6.20% $ 1.45% 0.60% 5.40% Tax Rate 1.45% 5.38 0.29 Tax Amount 8.46 0.46 0.08 6.42 Tax Amount 2.02

a) Tax FUTA SUTA b) 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. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of thre separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. FICA-Social Security FICA-Medicare a b. c. FUTA SUTA c) Tax Gross Pay through August 31 $ 6,100 2,100 133,000 FICA-Social Security FICA-Medicare FUTA QUTA FICA-Social Security FICA-Medicare September Earnings Subject to Tax $ Gross Pay for September $ 1,400 2,200 9,600 $ September Earnings Subject to Tax 136.40 31.90 13.20 118.80 86.80 20.30 0.00 0.00 $ September Earnings Subject to Tax 0.00 139.20 0 Tax Rate Tax Amount 6.20% $ 1.45% 0.60% 5.40% Tax Rate 6.20% $ 1.45% 0.60% 5.40% Tax Rate 1.45% 5.38 0.29 Tax Amount 8.46 0.46 0.08 6.42 Tax Amount 2.02

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. 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. FUTA SUTA b) Tax FICA-Social Security FICA-Medicare FUTA SUTA b. C. c) Tax Gross Pay through August 31 $ 6,100 2,100 133,000 FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare September Earnings Subject to Tax $ Gross Pay for September $ 1,400 2,200 9,600 $ September Earnings Subject to Tax 136.40 86.80 20.30 0.00 0.00 69 31.90 13.20 118.80 September Earnings Subject to Tax 0.00 139.20 0 0 Tax Rate 6.20% $ 1.45% 0.60% 5.40% Tax Rate Tax Amount Tax Rate 6.20% S 1.45% 0.60% 5.40% 1.45% 5.38 0.29 Tax Amount 8.46 0.46 0.08 6.42 Tax Amount 2.02
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. 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. FUTA SUTA b) Tax FICA-Social Security FICA-Medicare FUTA SUTA b. C. c) Tax Gross Pay through August 31 $ 6,100 2,100 133,000 FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare September Earnings Subject to Tax $ Gross Pay for September $ 1,400 2,200 9,600 $ September Earnings Subject to Tax 136.40 86.80 20.30 0.00 0.00 69 31.90 13.20 118.80 September Earnings Subject to Tax 0.00 139.20 0 0 Tax Rate 6.20% $ 1.45% 0.60% 5.40% Tax Rate Tax Amount Tax Rate 6.20% S 1.45% 0.60% 5.40% 1.45% 5.38 0.29 Tax Amount 8.46 0.46 0.08 6.42 Tax Amount 2.02
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