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 to record the employer’s payroll taxes expense and its related liabilities.
|Employer Payroll taxes||September earnings subject to tax||Tax Rate||Tax Amount|
|FUTA (7,000 - 5,500)||1,500||0.60%||9|
|Total Payroll Taxes Expense||265.95|
|Sep. 30||Payroll taxes expense||265.95|
|FICA—Social security taxes payable||142.60|
|FICA—Medicare taxes payable||33.35|
|Federal unemployment taxes payable||9|
|State unemployment taxes payable||81|
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