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.

Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $90 for this pay period.

c ; Gross Pay through August 31 $ 5,000 2,500 131,900 Gross Pay for September $ 2,100 2,600 8,500 b. Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Tax Rate Tax Amount Subject to Tax Federal income tax $ 90.00 FICA-Social Security $ 2,100.00 6.20% 130.20 FICA-Medicare 2,100.00 1.45% 30.45 Total taxes withheld $ 250.65 No Debit Credit 1 2,100.00 Date General Journal September 30 Salaries expense FICASocial security taxes payable FICAMedicare taxes payable Employee federal income taxes payable Salaries payable