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. Gross Pay through
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. Gross Pay through
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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h
![Tax
Required information
[The following information applies to the questions displayed below.]
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.
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.
FUTA
SUTA
b)
Tax
Gross Pay through Gross Pay for
August 31
$ 6,800
2,400
131,800
September
$ 700
FICA-Social
Security
FICA-Medicare
FUTA
SUTA
FICA-Social
Security
FICA-Medicare
2,500
8,400
$
Answer is not complete.
September
Earnings Subject
to Tax
700.00
700.00
700.00
700.00 €
September
Earnings Subject
to Tax
2,100.00
2,100.00
Tax Rate
1.45% Ⓡ$
6.20%
0.60%
5.40%
Tax Rate:
1.45% $
6.20%
Tax
Amount
10.15
43.40
4.20
37.80
Tax
Amount
30.45
130.20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a790a0-66fb-484d-b679-2f5bcef08da6%2F8331070a-7ea0-4ed1-8d05-e67fe8abac44%2Fgdxzwqi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tax
Required information
[The following information applies to the questions displayed below.]
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.
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.
FUTA
SUTA
b)
Tax
Gross Pay through Gross Pay for
August 31
$ 6,800
2,400
131,800
September
$ 700
FICA-Social
Security
FICA-Medicare
FUTA
SUTA
FICA-Social
Security
FICA-Medicare
2,500
8,400
$
Answer is not complete.
September
Earnings Subject
to Tax
700.00
700.00
700.00
700.00 €
September
Earnings Subject
to Tax
2,100.00
2,100.00
Tax Rate
1.45% Ⓡ$
6.20%
0.60%
5.40%
Tax Rate:
1.45% $
6.20%
Tax
Amount
10.15
43.40
4.20
37.80
Tax
Amount
30.45
130.20
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