Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information for the Exercises below. [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security

Use the following information for the Exercises below.

[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.

Gross Pay through

August 31Gross Pay for September (right side is September)

image text in transcribedimage text in transcribedimage text in transcribed
Required information Use the following information for the Exercises below. [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. Gross Pay through Gross Pay for August 31 September a. $ 5,400 $2, 400 b. 2, 450 2,550 C. 123, 000 8,900 Exercise 9-5 Computing payroll taxes LO P2, P3 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 September Tax Earnings Subject Tax Rate Tax to Tax Amount FICA-Social Security $ 2,500.00 X 6.20% V $ 155.00 FICA-Medicare 2,500.00 X 1.45% 36.25 FUTA 1,600.00 0.60% 9.60 SUTA 1,600.00 5.40% 86.40 September Tax Earnings Subject Tax Rate Tax to Tax Amount FICA-Social Security 2,450.00 X 6.20% 151.90 FICA-Medicare 2,450.00 X 1.45% 35.53 FUTA 2,450.00 X 0.60% 14.70 SUTA 2,450.00 X 5.40% 132.30c) September Tax Earnings Subject Tax Rate Tax to Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA

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

Financial Reporting And Analysis

Authors: Lawrence Revsine, Daniel Collins

4th Edition

0073527092, 978-0073527093

More Books

Students also viewed these Accounting questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago