[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 31 |
|
Gross Pay for September |
|
a. |
|
$ |
6,500 |
|
|
|
$ |
900 |
|
|
b. |
|
|
2,050 |
|
|
|
|
2,150 |
|
|
c. |
|
|
122,200 |
|
|
|
|
8,100 |
|
|
|
|
|
a) |
Tax |
September Earnings Subject to Tax |
Tax Rate |
Tax Amount |
FICA—Social Security |
|
6.20% |
|
FICA—Medicare |
|
1.45% |
|
FUTA |
|
0.60% |
|
SUTA |
|
5.40% |
|
b) |
Tax |
September Earnings Subject to Tax |
Tax Rate |
Tax Amount |
FICA—Social Security |
|
|
|
FICA—Medicare |
|
|
|
FUTA |
|
|
|
SUTA |
|
|
|
c) |
Tax |
September Earnings Subject to Tax |
Tax Rate |
Tax Amount |
FICA—Social Security |
|
|
|
FICA—Medicare |
|
|
|
FUTA |
|
|
|
SUTA |
|
|
|
|