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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. 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
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