Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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. 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. FUTA SUTA b) Tax FICA-Social Security FICA-Medicare Gross Pay through August 31 $ 5,500 3,000 132,400 FICA-Social Security FICA-Medicare FUTA SUTA c) Tax FICA-Social Security FICA-Medicare FUTA SUTA Gross Pay for September $ 2,300 3,100 9,000 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
image text in transcribed
image text in transcribed
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. ompute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of thre parate situations (a), (b), and (c). ote: Round your answers to 2 decimal places. Required information (The following infomation apples to the questions displiayod botow.) BMx Company has one employee. FICA Soclal Security taxes are 6.2% of the first $137300 paid to as employee, and FiCA Medicare tawes ace 1.45\% of gross pay, For BMX, IA FUTA canes are 0.6\% and SUTA taxes are 5.42 of the first 57.000 puld to its employee, Compute BMXC' amounts for each of these four taxes as applied to the employee s gross earnings for September under each of thees Eeparate situetions (d). (b) and (c). Yote: Aound your anwwers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions