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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 31 | Gross Pay for September | |
---|---|---|
a. | $ 6,700 | $ 400 |
b. | 2,300 | 2,400 |
c. | 131,700 | 8,300 |
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).
a) \begin{tabular}{|l|l|l|l|} \hline Tax & \begin{tabular}{c} September Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline FICA-Social Security & & & \\ \hline FICA-Medicare & & & \\ \hline FUTA & & & \\ \hline SUTA & \begin{tabular}{c} September Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline b) & & & \\ \hline Tax & & & \\ \hline FICA-Social Security & & & \\ \hline FICA-Medicare & & & \\ \hline FUTA & & & \\ \hline SUTA & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline c) & \begin{tabular}{c} September Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline Tax & & & \\ \hline FICA_Social Security & & & \\ \hline FICA_Medicare & & & \\ \hline FUTA & & & \\ \hline SUTA & & & \\ \hline \end{tabular}Step by Step Solution
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