Required information Use the following information for the Exercises below. The

Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below. 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. a. b. C. Gross Pay through August $5,400 Gross Pay for September $2,400 3,000 8,900 19,100 113,100 Exercise 11-5 Computing payroll taxes LO P2, P3 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.)

Explanation / Answer

a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2400 6.20% 148.8 FICA-Medicare 2400 1.45% 34.8 FUTA 1600 0.60% 9.6 SUTA 1600 2.90% 46.4 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 3000 6.20% 186 FICA-Medicare 3000 1.45% 43.5 FUTA 0 SUTA 0 c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 5400 6.20% 334.8 FICA-Medicare 8900 1.45% 129.05 FUTA 0 SUTA 0

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