Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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. a. b. C. Gross Pay through August 31 $ 6,500 2,800 133,400 Gross Pay for September $ 1,900 2,900 10,000 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). (Round your answers to 2 decimal places.) a) Tax FICA-Social Security $ September Earnings Subject to Tax 1,900.00 Tax Rate Tax Amount FICA-Medicare 1,900.00 6.20% 1.45% $ 117.80 1,400.00 0.60% 1,400.00 5.40% 27.55 8.40 75.60 FUTA SUTA b) Tax FICA-Social Security $ September Earnings Subject to Tax 2,900.00 Tax Rate Tax Amount FICA Medicare 2,900.00 6.20% 1.45% $ 179.80 42.05 FUTA 2,900.00 0.60% 17.40 SUTA 2,900.00 5.40% 156.60 c) September Earnings Tax FICA-Social Security $ Subject to Tax 10,000.00 Tax Rate Tax Amount 6.20% $ 620.00 FICA-Medicare 10,000.00 1.45% 145.00 FUTA 0 SUITA

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

Forensic Accounting and Fraud Examination

Authors: Mary Jo Kranacher, Richard Riley, Joseph T. Wells

1st edition

047043774X, 978-0470437742

More Books

Students also viewed these Accounting questions

Question

What is manufacturing?

Answered: 1 week ago

Question

What are the attributes of a technical decision?

Answered: 1 week ago

Question

How do the two components of this theory work together?

Answered: 1 week ago