Question

Use the following information for the Exercises below. [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. $ 6,400 $ 800 b. 2,000 2,100 c. 122,100 8,000

Answer 1

a
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	800	6.20%	49.6
FICA-Medicare	800	1.45%	11.6
FUTA	600	0.60%	3.6
SUTA	600	5.40%	32.4
b
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2,100.00	6.20%	130.2
FICA-Medicare	2,100.00	1.45%	30.45
FUTA	0	0.60%	0
SUTA	0	5.40%	0
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	6,300.00	6.20%	390.6
FICA-Medicare	8,000.00	1.45%	116
FUTA	0	0.60%	0
SUTA	0	5.40%	0