BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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 31					Gross Pay for September
a.		$	5,000				$	2,100
b.			2,250					2,350
c.			122,600					8,500

1a. Compute BMXs amounts for each of these four taxes as applied to the employees gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)

a)
tax	Sept earnings subject to tax	tax rate	tax amount
FICA social security			n/a
FICA medicare			n/a
FUTA			n/a
SUTA			n/a
b)
tax	sept earnings subject to tax	tax rate	tax amount
FICA social security		n/a	n/a
FICA medicare		n/a	n/a
FUTA		n/a	n/a
SUTA		n/a	n/a
c)
tax	sept earnings subject to tax	tax rate	tax amount
FICA social security		n/a	n/a
FICA medicare		n/a	n/a
FUTA		n/a	n/a
SUTA		n/a	n/a

1b. Assuming situation (1a), prepare the employers September 30 journal entries 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.

The employees federal income taxes withheld by the employer are $90 for this pay period. Compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)

	sept earnings subject to tax	tax rate	tax amount
federal income tax			$90

Options for first column under federal income tax: FICA-medicare, FICA-social security, FUTA, SU

Prepare the employers Sept 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.

Date	General Journal	Debit	Credit
Sept 30