Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] BMX Company has one
Use the following information for the Exercises below. (Algo)
Skip to question
[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.
Gross Pay through August 31 | Gross Pay for September | |
---|---|---|
a. | $ 5,700 | $ 1,800 |
b. | 3,200 | 3,300 |
c. | 132,600 | 9,200 |
Exercise 11-7 (Algo) Computing payroll taxes LO P2, P3
Compute BMXs amounts for each of these four taxes as applied to the employees gross earnings for September under each of three separate situations (a), (b), and (c).
Note: Round your answers to 2 decimal places.
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