BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $
ID: 2418241 • Letter: B
Question
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $110,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.8% 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 your answers to 2 decimal places.)
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $110,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.
Explanation / Answer
ANSWER A:
ANSWER B:-
ANSWER C:-
TAX TAXABLE EARNING TAX RATE TAX AMOUNT FICA - Social Security 800 6.20% 49.60 FICA - Medicare 800 1.45% 11.60 FUTA 600 0.80% 4.80 SUTA 600 2.90% 17.40Related Questions
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