BMX Co. has one employee, and the company is subject to the Exercise 9-6 following taxes: Tax
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BMX Co. has one employee, and the company is subject to the Exercise 9-6 following taxes:
Tax Rate Applied To FICA—Social Security . . . . . . . 6.20% First $94,200 FICA—Medicare . . . . . . . . . . . 1.45 All gross pay FUTA . . . . . . . . . . . . . . . . . . . 0.80 First $7,000 SUTA . . . . . . . . . . . . . . . . . . . 2.90 First $7,000 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):
Gross Pay Gross through Pay for August September
a. $ 6,800 $ 900
b. 19,200 2,200
c. 89,200 8,000.AppendixLO1
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Related Book For
Financial Accounting Information For Decisions
ISBN: 9780073043753
4th Edition
Authors: John J. Wild
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