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. C. Gross Pay through August 31 $5,300 2,800 132, 200 Gross Pay for September $ 2,600 2,900 8,800
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. C. Gross Pay through August 31 $5,300 2,800 132, 200 Gross Pay for September $ 2,600 2,900 8,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
a.
b.
c.
Gross Pay through
August 31
$5,300
2,800
132, 200
Gross Pay for
September
Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its
related liabilities.
Payroll Taxes General
Expense
Journal
$ 2,600
2,900
8,800
Complete this question by entering your answers in the tabs below.
Employer Payroll taxes
Assuming situation (a), compute the payroll taxes expense.
Note: Round your answers to 2 decimal places.
September earnings
subject to tax
Tax Rate
< Payroll Taxes Expense
Tax Amount
General Journal >
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