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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
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. FICA - Social Security FICA Base FICA - Medicare Federal Unemployment Tax (FUTA) State Unemployment Tax (SUTA) 6.2% $137,700 1.45% 0.6% 5.4% Unemployment limit $7,000 Situation Gross Pay through August 31 Gross Pay for September $6,700.00 a. b. C. 2,300.00 131,700.00 Required: 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: If no tax is due, no formula is required. $400.00 2,400.00 8,300.00 Tax FICA-Social Security FICA-Medicare FUTA SUTA Situation a $24.80 $5.80 Situation b $148.80 $34.80 Situation c $514.60 $120.35
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