BMX Company has one employee. FICA Social Security taxes are 6.20% of the first
ID: 2472254 • Letter: B
Question
BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $113,700 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.
11,000
Compute BMX's amounts for each of the above four taxes as applied to the employee’s gross earnings for September under situation (a),(b), and (c). (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
Gross Pay through August Gross Pay for September a. 5,400 3,000 b. 16,200 2,700 c. 106,00011,000
Explanation / Answer
BMX Company (a) If the employee's salary upto Aug is $5,400 and For Sept. $3,000 FICA Social Security tax = $3,000 x 6.20% $186.00 FICA Medicare tax = $3,000 x 1.45% $43.50 FUTA Tax = $1,600 x 0.60% $9.60 SUTA Tax = $1,600 x 2.90% $46.40 (b) If the employee's salary upto Aug is $16,200 and For Sept. $2,700 FICA Social Security tax = $2,700 x 6.20% $167.40 FICA Medicare tax = $2,700 x 1.45% $39.15 FUTA Tax NiL $0.00 SUTA Tax Nil $0.00 (c) If the employee's salary upto Aug is $106,000 and For Sept. $11,000 FICA Social Security tax = $7,700 x 6.20% $477.40 FICA Medicare tax = $11,000 x 1.45% $159.50 FUTA Tax NiL $0.00 SUTA Tax Nil $0.00
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