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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%

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.

Gross Pay through August 31Gross Pay for Septembera.$ 5,600$ 1,500b.3,1003,200c.132,5009,100

Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $90 for this pay period.

  • Taxes to be Withheld From Gross Pay
  • General Journal

The employees federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. Note: Round your answers to 2 decimal places.

Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Subject to TaxTax RateTax AmountFederal income tax $90.0

Journal entry worksheet

  • Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.

Note: Enter debits before credits.

DateGeneral JournalDebitCreditSeptember 30

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