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 Gross Pay for August 31 $ 5,200 2,700 132,100 September $ 2,400 2,800 8,700 Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 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.
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 Gross Pay for August 31 $ 5,200 2,700 132,100 September $ 2,400 2,800 8,700 Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
i need the answer quickly
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of 3
Required information
Use the following information for the Exercises below. (Algo)
[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.
a.
b.
-ok
C.
Gross Pay through Gross Pay for
August 31
$ 5,200
2,700
132,100
September
$ 2,400
2,800
8,700
ht
"
nt
ences
Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3
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.
a)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
6.20%
FICA-Medicare
1.45%
FUTA
0.60%
SUTA
5.40%
b)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
FICA-Medicare
FUTA
SUTA](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F820caf8c-cb11-414d-a104-dce0d825596e%2F8708e36e-ade7-4b92-920f-1748f8d13b83%2Ff50p4nj_processed.png&w=3840&q=75)
Transcribed Image Text:5
of 3
Required information
Use the following information for the Exercises below. (Algo)
[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.
a.
b.
-ok
C.
Gross Pay through Gross Pay for
August 31
$ 5,200
2,700
132,100
September
$ 2,400
2,800
8,700
ht
"
nt
ences
Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3
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.
a)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
6.20%
FICA-Medicare
1.45%
FUTA
0.60%
SUTA
5.40%
b)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
FICA-Social Security
FICA-Medicare
FUTA
SUTA
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