[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 $5,300 2,800 132,200 Gross Pay for September $2,600 2,900 8,800 ompute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three parate situations (a), (b), and (c). ote: Round your answers to 2 decimal places.
[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 $5,300 2,800 132,200 Gross Pay for September $2,600 2,900 8,800 ompute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three parate situations (a), (b), and (c). ote: Round your answers to 2 decimal places.
Chapter9: Payroll, Estimated Payments, And Retirement Plans
Section: Chapter Questions
Problem 16MCQ
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Question
![es
!
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 $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.
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.
FUTA
SUTA
b)
Tax
a.
b.
C.
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
Gross Pay through
August 31
$ 5,300
2,800
132,200
FICA-Social Security
FICA-Medicare
FICA-Social Security
FICA-Medicare
FUTA
SUTA
Gross Pay for
September
$ 2,600
2,900
8,800
September Earnings
Subject to Tax
2,600.00
2,600.00
$
September Earnings
Subject to Tax
2,900.00
2,900.00
September Earnings
Subject to Tax
8,800.00
Tax Rate
6.20%
1.45%
0.60%
5.40%
Tax Rate
6,20%
1.45%
Tax Rate
1.45%
Tax Amount
$
161.20
37.70
Tax Amount
$
179.80
42.05
Tax Amount
127.60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46c3b2d3-f0de-4c46-aa30-a0d81e600201%2Fc912144e-5749-40cb-a7d8-9bfb0472e609%2Fn6lw2i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
!
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 $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.
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.
FUTA
SUTA
b)
Tax
a.
b.
C.
FICA-Social Security
FICA-Medicare
FUTA
SUTA
c)
Tax
Gross Pay through
August 31
$ 5,300
2,800
132,200
FICA-Social Security
FICA-Medicare
FICA-Social Security
FICA-Medicare
FUTA
SUTA
Gross Pay for
September
$ 2,600
2,900
8,800
September Earnings
Subject to Tax
2,600.00
2,600.00
$
September Earnings
Subject to Tax
2,900.00
2,900.00
September Earnings
Subject to Tax
8,800.00
Tax Rate
6.20%
1.45%
0.60%
5.40%
Tax Rate
6,20%
1.45%
Tax Rate
1.45%
Tax Amount
$
161.20
37.70
Tax Amount
$
179.80
42.05
Tax Amount
127.60
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