9th Edition

ISBN: 9781307841862

Author: Wild

Publisher: MCG/CREATE

Concept explainers

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll p…

Videos

Textbook Question

Chapter 9, Problem 7E

Exercise 9-5 Computing payroll taxes P2 P3

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 1.4% 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. 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 amounts to cents.)

	Gross Pay through August	Gross Pay for September
a.	$ 6,400	$ 800
b.	18,200	2,100
c.	112,200	8,000

Check (a) FUTA, $3.60; SUTA, $17.40

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9, Problem 6E

Chapter 9, Problem 8E

Students have asked these similar questions

How much is the annual amortization expense for 2022 on these financial accounting question?

Give true answer this general accounting question

Amy is evaluating the cash flow consequences of organizing her business entity SHO as an LLC (taxed as a sole proprietorship), an S corporation, or a C corporation. She used the following assumptions to make her calculations: a) For all entity types, the business reports $22,000 of business income before deducting compensation paid to Amy and payroll taxes SHO pays on Amy's behalf. b) All entities use the cash method of accounting. c) If Amy organizes SHO as an S corporation or a C corporation, SHO will pay Amy a $5,000 annual salary (assume the salary is reasonable for purposes of this problem). For both the S and C corporations, Amy will pay 7.65 percent FICA tax on her salary and SHO will also pay 7.65 percent FICA tax on Amy's salary (the FICA tax paid by the entity is deductible by the entity). d) Amy's marginal ordinary income tax rate is 35 percent, and her income tax rate on qualified dividends and net capital gains is 15 percent. e) Amy's marginal self-employment tax rate is…

Chapter 9 Solutions

FIN + MANAGERIAL ACCT 9E CH 1-12

Ch. 9 - Prob. 1QS Ch. 9 - Prob. 2QS Ch. 9 - Prob. 3QS Ch. 9 - Prob. 4QS Ch. 9 - Prob. 5QS Ch. 9 - Prob. 6QS Ch. 9 - Prob. 7QS Ch. 9 - Prob. 8QS Ch. 9 - Prob. 9QS Ch. 9 - Prob. 10QS

Ch. 9 - Prob. 11QS Ch. 9 - Prob. 12QS Ch. 9 - Prob. 13QS Ch. 9 - Prob. 14QS Ch. 9 - Prob. 15QS Ch. 9 - Prob. 16QS Ch. 9 - Prob. 17QS Ch. 9 - Prob. 18QS Ch. 9 - Prob. 19QS Ch. 9 - Prob. 20QS Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Exercise 9-5 Computing payroll taxes P2 P3 BMX...Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Prob. 10E Ch. 9 - Prob. 11E Ch. 9 - Prob. 12E Ch. 9 - Prob. 13E Ch. 9 - Prob. 14E Ch. 9 - Prob. 15E Ch. 9 - Prob. 16E Ch. 9 - Prob. 17E Ch. 9 - Prob. 18E Ch. 9 - Prob. 19E Ch. 9 - Prob. 20E Ch. 9 - Prob. 21E Ch. 9 - Prob. 22E Ch. 9 - Prob. 1PSA Ch. 9 - Prob. 2PSA Ch. 9 - Prob. 3PSA Ch. 9 - Prob. 4PSA Ch. 9 - Prob. 5PSA Ch. 9 - Prob. 6PSA Ch. 9 - Prob. 1PSB Ch. 9 - Prob. 2PSB Ch. 9 - Prob. 3PSB Ch. 9 - Prob. 4PSB Ch. 9 - Prob. 5PSB Ch. 9 - Prob. 6PSB Ch. 9 - Prob. 9SP Ch. 9 - Prob. 9CP Ch. 9 - Prob. 1.1AA Ch. 9 - Prob. 1.2AA Ch. 9 - Prob. 2.1AA Ch. 9 - Prob. 2.2AA Ch. 9 - Prob. 2.3AA Ch. 9 - Prob. 3.1AA Ch. 9 - Prob. 3.2AA Ch. 9 - Prob. 3.3AA Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - 3. What are the three important questions...Ch. 9 - 5. What is the combined amount (in percent) of the...Ch. 9 - 6. What is the current Medicare tax rate? This...Ch. 9 - Prob. 6DQ Ch. 9 - Prob. 7DQ Ch. 9 - Prob. 8DQ Ch. 9 - Prob. 9DQ Ch. 9 - Prob. 10DQ Ch. 9 - 12. ᴬWhat is a wage bracket withholding table? Ch. 9 - Prob. 12DQ Ch. 9 - Prob. 1BTN Ch. 9 - Prob. 2BTN Ch. 9 - Prob. 4BTN Ch. 9 - Prob. 5BTN

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.