Question

# BMX Company has one employee. FICA Social Security taxes are 6.2% of the first \$128,400 paid...

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 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.)

 a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 1900 6.20% 117.80 FICA-Medicare 1900 1.45% 27.55 FUTA 500 0.60% 3.00 SUTA 500 5.40% 27.00 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 3100 6.20% 192.20 FICA-Medicare 3100 1.45% 44.95 FUTA 3100 0.60% 18.60 SUTA 3100 5.40% 167.40 c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 4300 6.20% 266.60 FICA-Medicare 10000 1.45% 145.00 FUTA 0 0.60% 0.00 SUTA 0 5.40% 0.00 Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6500 = \$500 Note: Earnings taxable for Social Security in (c) = 128400-124100 = \$4300