Question

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. | $ | 6,400 | $ | 800 | |||||||

b. | 2,000 | 2,100 | |||||||||

c. | 122,100 | 8,000 | |||||||||

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.)**

Answer #1

a) |
|||

Tax |
September Earnings Subject to Tax |
Tax Rate |
Tax Amount |

FICA-Social Security | 800 | 6.20% | 49.60 |

FICA-Medicare | 800 | 1.45% | 11.60 |

FUTA | 600 | 0.60% | 3.60 |

SUTA | 600 | 5.40% | 32.40 |

b) |
|||

Tax |
September Earnings Subject to Tax |
Tax Rate |
Tax Amount |

FICA-Social Security | 2100 | 6.20% | 130.20 |

FICA-Medicare | 2100 | 1.45% | 30.45 |

FUTA | 2100 | 0.60% | 12.60 |

SUTA | 2100 | 5.40% | 113.40 |

c) |
|||

Tax |
September Earnings Subject to Tax |
Tax Rate |
Tax Amount |

FICA-Social Security | 6300 | 6.20% | 390.60 |

FICA-Medicare | 8000 | 1.45% | 116.00 |

FUTA | 0 | 0.60% | 0.00 |

SUTA | 0 | 5.40% | 0.00 |

Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6400 = $600 | |||

Note: Earnings taxable for Social Security in c = 128400-122100 = $6300 |

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.
$
5,200
$
2,400
b.
2,350
2,450
c.
122,800
8,700
Compute BMX’s amounts for each of these four taxes as applied to...

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.
$
6,600
$
500
b.
2,100
2,200
c.
122,300
8,200
Compute BMX’s amounts for each of these four taxes as applied to...

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.
$
6,400
$
800
b.
2,000
2,100
c.
122,100
8,000
Assuming situation (a), prepare the employer’s
September 30 journal entries to record...

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
$
1,900
b.
3,000
3,100
c.
124,100
10,000
rev: 05_16_2019_QC_CS-168714
Compute BMX’s amounts for each of these four taxes as...

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. $ 6,700 $ 400 b.
2,150 2,250 c. 122,400 8,300 rev: 05_16_2019_QC_CS-168714 Compute
BMX’s amounts for each of these four taxes as...

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. $ 5,500 $ 2,300 b.
2,500 2,600 c. 123,100 9,000 rev: 05_16_2019_QC_CS-168714 Assuming
situation (a), prepare the employer’s September 30 journal entries...

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee.
Gross Pay through August
Gross Pay for September
a.
$
5,500
$
2,300
b.
19,200
3,100
c.
113,200
9,000
Compute BMX’s amounts for each of these four taxes as applied to
the...

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $127,200 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 3.1% and
SUTA taxes are 2.9% of the first $7,000 paid to its employee.
Gross Pay through August 31
Gross Pay for September
a.
$
5,200
$
2,400
b.
2,500
2,800
c.
119,600
8,700
Compute BMX’s amounts for each of these four taxes as applied to...

[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)
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for the current year for each of its employees follows. Employee
Cumulative Pay Employee Cumulative Pay Employee Cumulative Pay Ken
S $ 5,800 Michelle W $ 150,500 Lori K $ 137,900 Tim V...

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