! a) Tax FUTA SUTA b) Tax Required information [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. 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.) FUTA SUTA c) Tax a. b. c. FICA-Social Security FICA-Medicare Gross Pay through August $ 6,700 18,500 112,500 FUTA SUTA FICA-Social Security FICA-Medicare FICA-Social Security FICA-Medicare Gross Pay for September $ 400 2,400 8,300 $ September Earnings Subject to Tax 400.00 400.00 September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate 6.20% $ 1.45% 0.60% 2.90% Tax Rate Tax Amount Tax Rate 24.80 5.80 Tax Amount Tax Amount
! a) Tax FUTA SUTA b) Tax Required information [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. 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.) FUTA SUTA c) Tax a. b. c. FICA-Social Security FICA-Medicare Gross Pay through August $ 6,700 18,500 112,500 FUTA SUTA FICA-Social Security FICA-Medicare FICA-Social Security FICA-Medicare Gross Pay for September $ 400 2,400 8,300 $ September Earnings Subject to Tax 400.00 400.00 September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate 6.20% $ 1.45% 0.60% 2.90% Tax Rate Tax Amount Tax Rate 24.80 5.80 Tax Amount Tax Amount
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 32P
Related questions
Question
![!
a)
Tax
Required information
[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.
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.)
FUTA
SUTA
b)
Tax
a.
b.
C.
FICA-Social Security
FICA-Medicare
Gross Pay
through August
$ 6,700
18,500
112,500
FUTA
SUTA
c)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 400
2,400
8,300
September Earnings
Subject to Tax
400.00
400.00
$
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
6.20%
1.45%
0.60%
2.90%
Tax Rate
Tax Rate
Tax Amount
$
24.80
5.80
Tax Amount
Tax Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f4bdf09-d79d-4486-b045-adf743a6510d%2F0d964f94-065d-4458-926f-6f5a279ede5e%2F215fzid_processed.png&w=3840&q=75)
Transcribed Image Text:!
a)
Tax
Required information
[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.
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.)
FUTA
SUTA
b)
Tax
a.
b.
C.
FICA-Social Security
FICA-Medicare
Gross Pay
through August
$ 6,700
18,500
112,500
FUTA
SUTA
c)
Tax
FICA-Social Security
FICA-Medicare
FUTA
SUTA
FICA-Social Security
FICA-Medicare
Gross Pay for
September
$ 400
2,400
8,300
September Earnings
Subject to Tax
400.00
400.00
$
September Earnings
Subject to Tax
September Earnings
Subject to Tax
Tax Rate
6.20%
1.45%
0.60%
2.90%
Tax Rate
Tax Rate
Tax Amount
$
24.80
5.80
Tax Amount
Tax Amount
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