BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 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. $ 5,200 $ 2,400 b. 2,700 2,800 c. 127,300 8,700 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities.
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 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. $ 5,200 $ 2,400 b. 2,700 2,800 c. 127,300 8,700 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 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. | $ | 5,200 | $ | 2,400 | ||||||
| b. | 2,700 | 2,800 | ||||||||
| c. | 127,300 | 8,700 | ||||||||
Assuming situation (a), prepare the employer’s September 30
Transcribed Image Text:Journal entry worksheet
1
>
Record the employer's September 30 payroll taxes expense and its related
liabilities.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Sep 30
Record entry
Clear entry
View general journal
Transcribed Image Text:Payroll Taxes
Expense
General
Journal
Compute the payroll taxes expense. (Round your answers to 2 decimal places.)
September earnings
subject to tax
Employer Payroll taxes
Tax Rate
Tax Amount
$
0.00
%24
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