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I need help with B (FUTA and SUTA are incorrect). BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $127,200
I need help with B (FUTA and SUTA are incorrect).
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $127,200 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 3.1% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Gross Pay through August Gross Pay for September 31 6,400 2,000 120,900 $ $ 800 2,100 8,000 . . C. 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. Leave no cells blank.) a) September Earnings Subject to Tax Tax Rate x Tax Amount 6.20% $ FICA-Social Security $ 800.00 49.60 800.00 FICA-Medicare 1.45% 11.60 600.00 600.00 3.10% FUTA 18.60 SUTA 2.90% 17.40 b) September Earnings Subject to Tax Tax Rate Tax Amount x 2,100.00 FICA-Social Security $ 6.20% 130.20 2,100.00 1.45% FICA-Medicare 30.45 0.00 FUTA 0.00 SUTA c) September Earnings Subject to Tax x Tax Rate Tax Amount 6,300.00 8,000.00 6.20% $ FICA-Social Security $ 390.60 FICA-Medicare 1.45% 116.00 FUTA 3.10% SUTA 0 2.90%Step by Step Solution
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