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 $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. Gross Pay through August 31 $ 6,500 2,800 133,400 Gross Pay for September $ 1,900 2,900 10,000 pute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three rate situations (a), (b), and (c). : Round your answers to 2 decimal places.
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 $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. Gross Pay through August 31 $ 6,500 2,800 133,400 Gross Pay for September $ 1,900 2,900 10,000 pute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three rate situations (a), (b), and (c). : Round your answers to 2 decimal places.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 7E
Related questions
Question
![a)
Tax
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).
Note: Round your answers to 2 decimal places.
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.
FICA-Social Security
FICA-Me
FUTA
SUTA
Tax
a.
b.
Gross Pay through
August 31
$ 6,500
2,800
133,400
FICA-Social Security
FICA-Medicare
FUTA
SUTA
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 1,900
2,900
10,000
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%2F75846f55-09e5-4940-bce5-0966d235b49d%2F008b25be-8bc0-4b92-b2e4-d300955dc692%2Fsebpl1p_processed.png&w=3840&q=75)
Transcribed Image Text:a)
Tax
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).
Note: Round your answers to 2 decimal places.
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.
FICA-Social Security
FICA-Me
FUTA
SUTA
Tax
a.
b.
Gross Pay through
August 31
$ 6,500
2,800
133,400
FICA-Social Security
FICA-Medicare
FUTA
SUTA
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 1,900
2,900
10,000
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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