Question

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first \$127,200 paid...

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 employee’s gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places. Leave no cells blank.)

 a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA—Social Security \$2,400.00 FICA—Medicare FUTA SUTA 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

 a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2400 6.20% 148.80 FICA-Medicare 2400 1.45% 34.80 FUTA 1800 3.10% 55.80 SUTA 1800 2.90% 52.20 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2800 6.20% 173.60 FICA-Medicare 2800 1.45% 40.60 FUTA 2800 3.10% 86.80 SUTA 2800 2.90% 81.20 c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 7600 6.20% 471.20 FICA-Medicare 8700 1.45% 126.15 FUTA 0 3.10% 0.00 SUTA 0 2.90% 0.00 Note: Earnings taxable for FUTA and SUTA in (a) = 7000-5200 = \$1800 Note: Earnings taxable for Social Security in (c) = 127200-119600 = \$7600