BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 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. Gross Pay through August $ 6,400 Gross Pay for September $ 800 Prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount 0.00
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 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. Gross Pay through August $ 6,400 Gross Pay for September $ 800 Prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount 0.00
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16MC: An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the...
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![BMX Company has one employee. FICA Social Security taxes are 6.2% of the first
$117,000 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.
Gross Pay through
August
$ 6,400
Gross Pay for
September
$ 800
Prepare the employer's September 30 journal entries to record the employer's payroll
taxes expense and its related liabilities. (Round your answers to 2 decimal places.)
Employer Payroll taxes
September earnings
subject to tax
Tax Rate
Tax Amount
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32360486-4349-4d7a-a7c8-ee9ae2f6c554%2Fb739bdd0-287d-400d-bb4a-2d7cf6b9a3a4%2Fklcrqz4_processed.png&w=3840&q=75)
Transcribed Image Text:BMX Company has one employee. FICA Social Security taxes are 6.2% of the first
$117,000 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.
Gross Pay through
August
$ 6,400
Gross Pay for
September
$ 800
Prepare the employer's September 30 journal entries to record the employer's payroll
taxes expense and its related liabilities. (Round your answers to 2 decimal places.)
Employer Payroll taxes
September earnings
subject to tax
Tax Rate
Tax Amount
0.00
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