BMX Company has one employee. FICA Social Security taxes are 6.20% of the first

Question

BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.60% and SUTA taxes are 2.90% of the first $7,000 paid to its employee. Prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $294.50 for this pay period. (Round your answers to 2 decimal places.) Prepare the employers September 30 journal entry to record the accrued salary expense and its related payroll liabilities for this employee.

Explanation / Answer

Journal Entry:

Date Account Title Debit Credit Sep 30 Gross Pay 1,900 FICA Tax Payable 145.35 Federal Income tax withholding payable 294.50 Net Pay 1,460.15

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