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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45%
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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. | $ | 5,000 | $ | 2,100 | ||||||
b. | 2,250 | 2,350 | ||||||||
c. | 122,600 | 8,500 | ||||||||
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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.)
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Total payoff tax expense FICA September earnings subject to tax 2100 FICAMedica...
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