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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 Medere 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 Medere taxes are 1.45% of gross pay. For BMX, its FUTA taxes are ofthese SUTA taxes are 5.4% of the first $7,000 paid to its employee. Compute BMX's amounts for each of these Sour taxes as applied to the employee's gross earnings for September under each of three separate situa tions (a), (b), and (c). Round amounts to cents. Gross Pay through August 31 $ 6,400 2,000 131,400 Gross Pay for September $ 800 2,100 8,000 Exercise 11-7 Computing payroll taxes P2 P3 Check (0) FUTA, $3.60 SUTA, $32.40
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