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 $ 6,400 2,000 131,400 Gross Pay for September $ 800 2,100 8,000 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. Answer is complete but not entirely correct. Так September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security S 800.00 6.20% S 49.60 FICA-Medicare 800.00 1.45% 11.60 FUTA 600.00 0.60% 3.60 SUTA 600.00 5.40% 32.40 b)
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 $ 6,400 2,000 131,400 Gross Pay for September $ 800 2,100 8,000 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. Answer is complete but not entirely correct. Так September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security S 800.00 6.20% S 49.60 FICA-Medicare 800.00 1.45% 11.60 FUTA 600.00 0.60% 3.60 SUTA 600.00 5.40% 32.40 b)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
a.
b.
C.
Gross Pay through
August 31
$ 6,400
2,000
131,400
Gross Pay for
September
$ 800
2,100
8,000
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.
Answer is complete but not entirely correct.
Так
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social
Security
S
800.00
6.20%
S
49.60
FICA-Medicare
800.00
1.45%
11.60
FUTA
600.00
0.60%
3.60
SUTA
600.00
5.40%
32.40
b)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F56c9616a-6a85-420a-8c2c-9521c5e8eab5%2F59f06610-168c-4ba4-8fea-d1c7fe5a2f76%2Fk4yqh79_processed.jpeg&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.
a.
b.
C.
Gross Pay through
August 31
$ 6,400
2,000
131,400
Gross Pay for
September
$ 800
2,100
8,000
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.
Answer is complete but not entirely correct.
Так
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social
Security
S
800.00
6.20%
S
49.60
FICA-Medicare
800.00
1.45%
11.60
FUTA
600.00
0.60%
3.60
SUTA
600.00
5.40%
32.40
b)
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