FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 9, Problem 7E
Exercise 9-5 Computing payroll taxes P2 P3
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 1.4% 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. 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 amounts to cents.)
| Gross Pay through August | Gross Pay for September | |
| a. | $ 6,400 | $ 800 |
| b. | 18,200 | 2,100 |
| c. | 112,200 | 8,000 |
Check (a) FUTA, $3.60; SUTA, $17.40
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Exercise 9-11 (Algo) Computing payroll taxes LO P2, P3
Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to
each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes
are 5.4% of the first $7,000 paid to each employee. Cumulative pay for the current year for each of its
employees follows.
Employee
Ken S
Tim V
Steve S
Cumulative Pay
$ 6,400
50,400
97,000
Employee
Julie W
Michael M
Zach R
Cumulative Pay
$ 153,500
116,900
137,700
Employee
Christina S
Kitty O
Cumulative P
$ 142,200
46,900
John W
6,800
a. Compute the amounts in this table for each employee.
b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA
taxes, and SUTA taxes. Hint. Remember to include in those totals any employee share of taxes
that the company must collect.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the amounts in this table for each…
vork
Tax
a.
b.
C.
Gross Pay through
August 31
$ 6,800
2,400
131,800
FUTA
SUTA
b)
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.
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 700
FICA-Social Security
2,500
8,400
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.
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Saved
Tax Rate
Tax Rate
Help
Tax Amount
Save & Exit
Tax Amount
Check my wo
%24
Payroll Tax Entries
According to a summary of the payroll of Mountain Streaming Co.,
$110,000 was subject to the 6.0% social security tax and the
1.5% Medicare tax. Also, $25,000 was subject to state and federal
unemployment taxes.
a. Calculate the employer's payroll taxes, using the following
rates: state unemployment, 5.4%; federal unemployment, 0.8%.
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Remember that there is typically a maximum amount of
earnings subject to state and federal unemployment
taxes.
b. Journalize the entry to record the accrual of payroll taxes. If
an amount box does not require an entry, leave it blank.
Payroll Tax Expense V
Social Security Tax Payable V
Medicare Tax Payable v
State Unemployment Tax Payable Yv
Federal Unemployment Tax Payable
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Chapter 9 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 9 - Prob. 1QSCh. 9 - Prob. 2QSCh. 9 - Prob. 3QSCh. 9 - Prob. 4QSCh. 9 - Prob. 5QSCh. 9 - Prob. 6QSCh. 9 - Prob. 7QSCh. 9 - Prob. 8QSCh. 9 - Prob. 9QSCh. 9 - Prob. 10QS
Ch. 9 - Prob. 11QSCh. 9 - Prob. 12QSCh. 9 - Prob. 13QSCh. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Prob. 18QSCh. 9 - Prob. 19QSCh. 9 - Prob. 20QSCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Exercise 9-5 Computing payroll taxes P2 P3 BMX...Ch. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Prob. 18ECh. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Prob. 22ECh. 9 - Prob. 1PSACh. 9 - Prob. 2PSACh. 9 - Prob. 3PSACh. 9 - Prob. 4PSACh. 9 - Prob. 5PSACh. 9 - Prob. 6PSACh. 9 - Prob. 1PSBCh. 9 - Prob. 2PSBCh. 9 - Prob. 3PSBCh. 9 - Prob. 4PSBCh. 9 - Prob. 5PSBCh. 9 - Prob. 6PSBCh. 9 - Prob. 9SPCh. 9 - Prob. 9CPCh. 9 - Prob. 1.1AACh. 9 - Prob. 1.2AACh. 9 - Prob. 2.1AACh. 9 - Prob. 2.2AACh. 9 - Prob. 2.3AACh. 9 - Prob. 3.1AACh. 9 - Prob. 3.2AACh. 9 - Prob. 3.3AACh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - 3. What are the three important questions...Ch. 9 - 5. What is the combined amount (in percent) of the...Ch. 9 - 6. What is the current Medicare tax rate? This...Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - 12. ᴬWhat is a wage bracket withholding table?
Ch. 9 - Prob. 12DQCh. 9 - Prob. 1BTNCh. 9 - Prob. 2BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTN
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