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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 1.45%
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.
Compute BMXs amounts for each of these four taxes as applied to the employees gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)
a. b. Gross Pay through August 31 $ 5,300 2,800 132,200 Gross Pay for September $ 2,600 2,900 8,800 a) Tax Tax Rate Tax Amount September Earnings Subject to Tax $ 2,600.00 2,600.00 6.20% $ FICASocial Security FICAMedicare FUTA 161.20 37.70 1.45% 0.60% SUTA 5.40% b) Tax Tax Rate Tax Amount FICASocial Security 6.20% $ 179.80 FICA-Medicare September Earnings Subject to Tax $ 2,900.00 2,900.00 2,900.00 2,900.00 1.45% 42.05 17.40 FUTA SUTA c) 0.60% 5.40% 156.60 Tax September Earnings Subject to Tax Tax Rate Tax Amount 8,800.00 1.45% 127.60 FICA-Social Security FICA-Medicare FUTA SUTA 0 0
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