Question

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 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 | 2300 | 6.20% | 142.60 |

FICA-Medicare | 2300 | 1.45% | 33.35 |

FUTA | 1500 | 0.60% | 9.00 |

SUTA | 1500 | 2.90% | 43.50 |

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 | 0 | 0.60% | 0.00 |

SUTA | 0 | 2.90% | 0.00 |

c) |
|||

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

FICA-Social Security | 5300 | 6.20% | 328.60 |

FICA-Medicare | 9000 | 1.45% | 130.50 |

FUTA | 0 | 0.60% | 0.00 |

SUTA | 0 | 2.90% | 0.00 |

Note: Earnings taxable for FUTA and SUTA in (a) = 7000-5500 = 1500 | |||

Note: Earnings taxable for Social Security in c = 118500-113200 = $5300 |

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 $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...

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. $ 6,700 $ 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.
$
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
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. $ 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 $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...

[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...

[The following information applies to the questions
displayed below.]
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.
$
6,400
$
800
b.
18,200
2,100
c.
112,200
8,000
Assuming situation a, prepare...

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