BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICAMedicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paidto its employee.نفةC.Gross Pay through Gross Pay forAugust 31$ 5,2002,700132,100September$ 2,4002,8008,700Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of threeseparate situations (a), (b), and (c).Note: Round your answers to 2 decimal places.a)✓ Answer is complete but not entirely correct.SeptemberTaxEarnings SubjectTax RateTaxAmountto TaxFICA-Social$2,400.006.20%$ 148.80SecurityFICA-Medicare2,400.00✓1.45%34.80FUTA1,800.000.60%10.80SUTA1,800.005.40%97.20b)SeptemberTaxEarnings SubjectTax RateTaxAmountto TaxFICA-Social$2,800.006.20%$ 173.60SecurityFICA-Medicare2,800.001.45%40.60FUTA2,800.000.60%16.80SUTA2,800.005.40%151.20c)SeptemberTaxEarnings SubjectTax RateTaxAmountto TaxFICA-Social$5,600.006.20%$ 347.20SecurityFICA-Medicare5,600.00 X1.45%81.20FUTASUTA

Taxes on Social Security:The Federal Insurance Contributions Act (FICA) mandates a payroll tax and…

Answered: Compute BMX's amounts for each of these…

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Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September u

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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.
نفة
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.
a)
✓ Answer is complete but not entirely correct.
September
Tax
Earnings Subject
Tax Rate
Tax
Amount
to Tax
FICA-Social
$
2,400.00
6.20%
$ 148.80
Security
FICA-Medicare
2,400.00✓
1.45%
34.80
FUTA
1,800.00
0.60%
10.80
SUTA
1,800.00
5.40%
97.20
b)
September
Tax
Earnings Subject
Tax Rate
Tax
Amount
to Tax
FICA-Social
$
2,800.00
6.20%
$ 173.60
Security
FICA-Medicare
2,800.00
1.45%
40.60
FUTA
2,800.00
0.60%
16.80
SUTA
2,800.00
5.40%
151.20
c)
September
Tax
Earnings Subject
Tax Rate
Tax
Amount
to Tax
FICA-Social
$
5,600.00
6.20%
$ 347.20
Security
FICA-Medicare
5,600.00 X
1.45%
81.20
FUTA
SUTA

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