FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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a)
Tax
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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.
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).
Note: Round your answers to 2 decimal places.
FUTA
SUTA
b)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
b.
C.
c)
Tax
Gross Pay through
August 31
$ 6,100
2,100
133,000
FICA-Social Security
FICA-Medicare
FUTA
SUTA
FICA-Social Security
FICA-Medicare
September Earnings
Subject to Tax
$
Gross Pay for
September
$ 1,400
2,200
9,600
$
September Earnings
Subject to Tax
136.40
86.80
20.30
0.00
0.00
69
31.90
13.20
118.80
September Earnings
Subject to Tax
0.00
139.20
0
0
Tax Rate
6.20% $
1.45%
0.60%
5.40%
Tax Rate
Tax Amount
Tax Rate
6.20% S
1.45%
0.60%
5.40%
1.45%
5.38
0.29
Tax Amount
8.46
0.46
0.08
6.42
Tax Amount
2.02
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Transcribed Image Text:a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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. 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). Note: Round your answers to 2 decimal places. FUTA SUTA b) Tax FICA-Social Security FICA-Medicare FUTA SUTA b. C. c) Tax Gross Pay through August 31 $ 6,100 2,100 133,000 FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare September Earnings Subject to Tax $ Gross Pay for September $ 1,400 2,200 9,600 $ September Earnings Subject to Tax 136.40 86.80 20.30 0.00 0.00 69 31.90 13.20 118.80 September Earnings Subject to Tax 0.00 139.20 0 0 Tax Rate 6.20% $ 1.45% 0.60% 5.40% Tax Rate Tax Amount Tax Rate 6.20% S 1.45% 0.60% 5.40% 1.45% 5.38 0.29 Tax Amount 8.46 0.46 0.08 6.42 Tax Amount 2.02
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