a) Tax September Earnings Tax Rate Tax Amount Subject to Tax FICA-Social Security $ 1,500.00 6.20% $ 93.00 FICA Medicare 1,500.00 1.45% 21.75 FUTA 1,000.00 0.60% 6.00 1,000.00 5.40% 54.00 SUTA b) Tax September Earnings Tax Rate Tax Amount Subject to Tax FICA-Social Security 2,100.00 6.20% $ 130.20 FICA Medicare 2,100.00 1.45% 30.45 FUTA SUTA c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 4,800.00 6.20% $ 297.60 FICA-Medicare 9,500.00 1.45% 137.75 FUTA 0 SUTA 0
a) Tax September Earnings Tax Rate Tax Amount Subject to Tax FICA-Social Security $ 1,500.00 6.20% $ 93.00 FICA Medicare 1,500.00 1.45% 21.75 FUTA 1,000.00 0.60% 6.00 1,000.00 5.40% 54.00 SUTA b) Tax September Earnings Tax Rate Tax Amount Subject to Tax FICA-Social Security 2,100.00 6.20% $ 130.20 FICA Medicare 2,100.00 1.45% 30.45 FUTA SUTA c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 4,800.00 6.20% $ 297.60 FICA-Medicare 9,500.00 1.45% 137.75 FUTA 0 SUTA 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Required information Skip to question [The following information applies to the questions displayed below.] 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 Gross Pay for September a. $ 6,400 $ 1,700 b. 2,700 2,800 c. 133,300 9,900 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.
Transcribed Image Text:a)
Tax
September Earnings
Tax Rate
Tax Amount
Subject to Tax
FICA-Social Security
$
1,500.00
6.20%
$
93.00
FICA Medicare
1,500.00
1.45%
21.75
FUTA
1,000.00
0.60%
6.00
1,000.00
5.40%
54.00
SUTA
b)
Tax
September Earnings
Tax Rate
Tax Amount
Subject to Tax
FICA-Social Security
2,100.00
6.20% $
130.20
FICA Medicare
2,100.00
1.45%
30.45
FUTA
SUTA
c)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
$
4,800.00
6.20%
$
297.60
FICA-Medicare
9,500.00
1.45%
137.75
FUTA
0
SUTA
0
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