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.
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
Related questions
Question
A 275.
![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.
b.
a)
Tax
Exercise 11-7 (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.
Gross Pay through
August 31
$5,900
2,400
132,000
FICA-Social Security
FICA-Medicare
FUTA
SUTA
b)
Tax
Gross Pay for
September
$1,400
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
2,500
9,400
September Earnings
Subject to Tax
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
6.20% S
1.45%
0.60%
5.40%
Tax Rate
Tax Amount
Tax Rate
111.60
Tax Amount
Tax Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86dc0830-c044-4720-892e-a14a32e9838d%2Fb51857a2-421b-4ebd-86e0-328cafd2d9fa%2Fen3qjbb_processed.png&w=3840&q=75)
Transcribed Image Text: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.
b.
a)
Tax
Exercise 11-7 (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.
Gross Pay through
August 31
$5,900
2,400
132,000
FICA-Social Security
FICA-Medicare
FUTA
SUTA
b)
Tax
Gross Pay for
September
$1,400
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
2,500
9,400
September Earnings
Subject to Tax
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
6.20% S
1.45%
0.60%
5.40%
Tax Rate
Tax Amount
Tax Rate
111.60
Tax Amount
Tax Amount
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