BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $

Question

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 1.45% 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.

Gross Pay through August $6,500 Gross Pay for September $ 1,900 a. 4,100 114,200 10,000 Assuming situation a, 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 $80 for this pay period. (Round your answers to 2 decimal places Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earmings Tax Rate Tax Amount Subject to Tax Federal income tax 80.00

Explanation / Answer

Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Subject to Tax Tax Rate Tax Amount Federal income tax $80.00 FICA—Social Security $1,900.00 6.20% $117.80 FICA—Medicare $1,900.00 1.45% $27.55 Total taxes withheld 225.35 Date General Journal Debit Credit 30-Sep Salaries expense 1900 FICA—Social Security taxes payable $117.80 FICA—Medicare taxes payable $27.55 Employee federal income taxes payable 80 Salaries payable $1,674.65

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