2 Required information The following information applies to the questions displa

Question

2 Required information The following information applies to the questions displayed below Part 1 of 3 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 06% a to its employee 10 nd SUTA taxes are 2.9% of the first $7,000 paid ss Pay August $ 5,000 18,700 112,780 $2,100 2,600 8,500 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.) September EarningsTax Rate Tax Amount Subject to Tax Earnings Tax Rate to Tax Tax Amount

Explanation / Answer

a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2100 6.20% 130.2 FICA-Medicare 2100 1.45% 30.45 FUTA 2000 0.60% 12 SUTA 2000 2.90% 58 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2,600 6.20% 161.2 FICA-Medicare 2,600 1.45% 37.7 FUTA 0 SUTA 0 c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 5,800.00 6.20% 359.6 FICA-Medicare 8,500.00 1.45% 123.25 FUTA 0 SUTA 0

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