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Required Information [The following Information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the
Required Information [The following Information applies to the questions displayed below.] 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. a. b. c. Gross Pay through August 31 $ 6,800 2,400 131,800 Gross Pay for September $ 700 2,500 8,400 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.) a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 700.00 6.20% $ 43.40 FICA-Medicare 700.00 1.45% FUTA 700.00 0.60% 10.15 4.20 SUTA 700.00 5.40% 37.80 b) FUTA SUTA Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 2,500.00 6.20% $ 155.00 FICA-Medicare 2,500.00 1.45% 36.25 0.00 0.00 c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare 8,400.00 1.45% 121.80 FUTA SUTA
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