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. a. b. C. Gross Pay through August 31 $ 6,700 2,300 131,700 Gross Pay for September $ 400 2,400 8,300
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. a. b. C. Gross Pay through August 31 $ 6,700 2,300 131,700 Gross Pay for September $ 400 2,400 8,300
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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Question
![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.
b.
Gross Pay through
August 31
$ 6,700
2,300
131,700
Gross Pay for
September
$ 400
2,400
8,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f9c2d6c-22c5-4836-99bd-5f88f6a141ee%2F2681aa12-9e5e-4c50-99e3-2ae69e3aad3d%2F9e2kkvc_processed.png&w=3840&q=75)
Transcribed Image Text: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.
b.
Gross Pay through
August 31
$ 6,700
2,300
131,700
Gross Pay for
September
$ 400
2,400
8,300
![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). (Round your answers to 2 decimal places.)
a)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
b)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
September Earnings
Subject to Tax
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
Tax Rate
Tax Rate
Tax Amount
Tax Amount
Tax Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f9c2d6c-22c5-4836-99bd-5f88f6a141ee%2F2681aa12-9e5e-4c50-99e3-2ae69e3aad3d%2Fguq36b_processed.png&w=3840&q=75)
Transcribed Image Text: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). (Round your answers to 2 decimal places.)
a)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
b)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
September Earnings
Subject to Tax
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
Tax Rate
Tax Rate
Tax Amount
Tax Amount
Tax Amount
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