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 $118,500 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 2.9% of the first $7,000 paid to its employee. FUTA SUTA b) Tax 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). (Round your answers to 2 decimal places.) FICA-Social Security FICA-Medicare a. b. FUTA SUTA Tax Gross Pay through August $ 6,700 18,500 112,500 FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare Gross Pay for September $ 400 2,400 8,300 September Earnings Subject to Tax $ 400.00 400.00 September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate Tax Amount 6.20% $ 1.45% 0.60% 2.90% Tax Rate Tax Rate 24.80 5.80 Tax Amount Tax Amount
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 $118,500 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 2.9% of the first $7,000 paid to its employee. FUTA SUTA b) Tax 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). (Round your answers to 2 decimal places.) FICA-Social Security FICA-Medicare a. b. FUTA SUTA Tax Gross Pay through August $ 6,700 18,500 112,500 FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare Gross Pay for September $ 400 2,400 8,300 September Earnings Subject to Tax $ 400.00 400.00 September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate Tax Amount 6.20% $ 1.45% 0.60% 2.90% Tax Rate Tax Rate 24.80 5.80 Tax Amount Tax Amount
Chapter9: Payroll, Estimated Payments, And Retirement Plans
Section: Chapter Questions
Problem 16MCQ
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