Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $128,400 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. b. Gross Pay through August 31 $ 6,700 2,150 122,400 Gross Pay for September $ 400 2,250 8,300 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.) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security S 400.00 6.20% $ 24.80 FICA-Medicare 400.00 1.45% 5.80 FUTA 300.00 0.60% 1.80 SUTA 300.00 5.40% 16.20 b Tax September Earnings Subject to Txx Tax Rate Tax Amount FICA-Social Security 2,250.00 2,250.00 6.20% $ 1.45% 139.50 32.63 FICA-Medicare FUTA SUTA S Tax September Earnings Bubject to T Tax Rate Tex Amount FICA-Social Security FICA-Medicare FUTA GUTAimage text in transcribed

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

Step: 3

blur-text-image

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

Using Microsoft Excel And Access 2013 For Accounting

Authors: Glenn Owen

4th Edition

1305161858, 9781305161856

More Books

Students also viewed these Accounting questions

Question

Explain the importance of Human Resource Management

Answered: 1 week ago