Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

! Required information [The following information applies to the questions displayed below.] a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2%

! Required information [The following information applies to the questions displayed below.] a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 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. a. b. C. Gross Pay through August 31 $ 6,400 2,700 128,500 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). Note: Round your answers to 2 decimal places. FICA-Social Security FICA Medicare FUTA SUTA b) Tax FUTA SUTA c) Tax FICA-Social Security FICA-Medicare Gross Pay for September September Earnings Subject to Tax September Earnings Subject to Tax $ 1,700 2,800 9,900 September Earnings Subject to Tax Tax Rate Tax Rate Tax Rate Tax Amount Tax Amount Tax Amount
image text in transcribed
Required informetion [The following information applies to the questions displayed below] BMX Company has one employee FCA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 145% of gross pary. For BMX. its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its emplovee. Compute BMX's amounts for each of these four taves as applied to the employee's gross earnings for September under each of three separate siluarions (a) (b), and ic) Note: Round your answers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Internal Auditing Appraising Operations And Controls

Authors: Victor Z. Brink, Herbert N. Witt

4th Edition

0471080977, 978-0471080978

More Books

Students also viewed these Accounting questions

Question

Briefly outline the steps required to complete a risk assessment.

Answered: 1 week ago