Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] a) 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. Tax a. b. c. Gross Pay through August 31 $ 5,100 2,600 132,000 4 Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 Gross Pay for September $ 2,200 2,700 8,600 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earni for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. September Earnings Subject to Tax Tax Rate Tax Amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
FICA-Social
Security
FICA-Medicare
FUTA
SUTA
b)
Tax
FICA-Social
Security
FICA-Medicare
FUITA
Answer is not complete.
September
Earnings Subject
to Tax
$
400.00
400.00 X
300.00 X
300.00 X
September
Earnings Subject
to Tax
Tax Rate
6.20%
1.45%
0 60%
5.40%
Tax Rate
Tax
Amount
24.80
5.80
1.80
16.20
Tax
Amount
Transcribed Image Text: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 FICA-Social Security FICA-Medicare FUTA SUTA b) Tax FICA-Social Security FICA-Medicare FUITA Answer is not complete. September Earnings Subject to Tax $ 400.00 400.00 X 300.00 X 300.00 X September Earnings Subject to Tax Tax Rate 6.20% 1.45% 0 60% 5.40% Tax Rate Tax Amount 24.80 5.80 1.80 16.20 Tax Amount
!
a)
Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Tax
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.
August 31
$ 5,100
2,600
132,000
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 earning
for September under each of three separate situations (a), (b), and (c).
Note: Round your answers to 2 decimal places.
Gross Pay for
September
$ 2,200
2,700
8,600
September Earnings
Subject to Tax
Tax Rate
Tax Amount
Transcribed Image Text:! a) Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Tax 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. August 31 $ 5,100 2,600 132,000 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 earning for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. Gross Pay for September $ 2,200 2,700 8,600 September Earnings Subject to Tax Tax Rate Tax Amount
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