taxes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
QC 20.
![a)
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.
Required information
[The following information applies to the questions displayed below.]
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.)
FUTA
SUTA
C)
Tax
a.
b.
C.
FICA-Social Security
FICA-Medicare.
Gross Pay through
August 31
$ 6,300
2,600
133,200
FICA-Social Security
FICA-Medicare.
FUTA
SUTA
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$1,800
2,700
9,800
September Earnings
Subject to Tax
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
Tax Rate
Tax Rate
Tax Amount
Tax Amount
Tax Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1faa7178-2e16-46fb-b3da-600639469671%2F38033f40-14fd-4cd9-9247-d2b978536904%2F2orpn5p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a)
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.
Required information
[The following information applies to the questions displayed below.]
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.)
FUTA
SUTA
C)
Tax
a.
b.
C.
FICA-Social Security
FICA-Medicare.
Gross Pay through
August 31
$ 6,300
2,600
133,200
FICA-Social Security
FICA-Medicare.
FUTA
SUTA
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$1,800
2,700
9,800
September Earnings
Subject to Tax
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
Tax Rate
Tax Rate
Tax Amount
Tax Amount
Tax Amount
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