BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee.

	Gross Pay through August					Gross Pay for September
a.		$	6,600				$	500
b.			18,400					2,300
c.			112,400					8,200

Exercise 9-5 Computing payroll taxes LO P2, P3

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)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICASocial Security	$500.00	6.20%	$31.00
FICAMedicare	500.00	1.45%	7.25
FUTA	400.00	0.60%	2.40
SUTA	400.00	2.90%	11.60
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICASocial Security	$2,300.00	6.20%	$142.60
FICAMedicare	2,300.00	1.45%	33.35
FUTA	0
SUTA	0
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICASocial Security
FICAMedicare
FUTA	0
SUTA	0