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 August 31 Gross Pay for September a. $ 5,000 $ 2,100 b. 2,500 2,600 c. 131,900 8,500
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 August 31 | Gross Pay for September | |
|---|---|---|
| a. | $ 5,000 | $ 2,100 |
| b. | 2,500 | 2,600 |
| c. | 131,900 | 8,500 |
Assuming situation (a), prepare the employer’s September 30
Complete this question by entering your answers in the tabs below.
- Taxes to be Withheld From Gross Pay
- General Journal
The employee’s federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)
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