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.	$ 6,300	$ 1,800
b.	2,600	2,700
c.	133,200	9,800

a)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICASocial Security	$1,800.00selected answer correct	6.20%selected answer correct	$111.60
FICAMedicare	1,800.00selected answer correct	1.45%selected answer correct	26.10
FUTA	700.00selected answer correct	0.60%selected answer correct	4.20
SUTA	700.00selected answer correct	5.40%selected answer correct	37.80
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICASocial Security	$2,700.00selected answer correct	6.20%	$167.40
FICAMedicare	2,700.00selected answer correct	1.45%	39.15
FUTA	2,700.00selected answer correct	0.60%	16.20
SUTA	2,700.00selected answer correct	5.40%	145.80
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICASocial Security	$4,500.00selected answer correct	6.20%	$279.00
FICAMedicare	9,800.00selected answer correct	1.45%	142.10
FUTA	0selected answer correct
SUTA	0selected answer correct