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Required information [The following information applies to the questions displayed below] BMX company nas one env() yee
Required information [The following information applies to the questions displayed below]
BMX company nas one env()
yee. 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 Gross Pay for
august 31 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 the employee's gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)
Expert Solution
| a) | |||
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | 500 | 6.20% | 31 |
| FICA-Medicare | 500 | 1.45% | 7.25 |
| FUTA | 400 | 0.60% | 2.4 |
| SUTA | 400 | 5.40% | 21.6 |
| b) | |||
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | 2200 | 6.20% | 136.4 |
| FICA-Medicare | 2200 | 1.45% | 31.9 |
| FUTA | 2200 | 0.60% | 13.2 |
| SUTA | 2200 | 5.40% | 118.8 |
| c) | |||
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | 6100 | 6.20% | 378.2 |
| FICA-Medicare | 8200 | 1.45% | 118.9 |
| FUTA | 0 | 0.60% | 0 |
| SUTA | 0 | 5.40% | 0 |
| Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6600 = $400 | |||
| Note: Earnings taxable for Social Security in c = 128400-122300 = $6100 | |||
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