BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 5.4% of the first $7,000 pald o its employee. b. C. Gross Pay through August 31 $ 6,400 2,000 131,400 Gross Pay for September $ 800 2,100 8,000
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 5.4% of the first $7,000 pald o its employee. b. C. Gross Pay through August 31 $ 6,400 2,000 131,400 Gross Pay for September $ 800 2,100 8,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1CP
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![[The following information applies to the questions displayed below]
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 5.4% of the first $7,000 pald
to its employee.
a.
b.
C.
Gross Pay through
August 31
$ 6,400
2,000
131,400
Gross Pay for
September
$ 800
2,100
8,000
Assuming situation (a), prepare the employer's September 30 journal entry 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.
Complete this question by entering your answers in the tabs below.
Taxes to be
Withheld From
Gross Pay
General
Journal
The employee's federal income taxes withheld by the employer are $80 for this pay period. Assuming situation (a), compute
the taxes to be withheld from gross pay for this employee.
Note: Round your answers to 2 decimal places.
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
Federal income tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
$
80.00
<Taxes to be Withheld From Gross Pay
General Journal >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95c56668-3561-473f-b316-c0a6a676416d%2F0fa7df04-d085-454b-b63d-cb9f7a79bf1b%2F7gils4_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below]
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 5.4% of the first $7,000 pald
to its employee.
a.
b.
C.
Gross Pay through
August 31
$ 6,400
2,000
131,400
Gross Pay for
September
$ 800
2,100
8,000
Assuming situation (a), prepare the employer's September 30 journal entry 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.
Complete this question by entering your answers in the tabs below.
Taxes to be
Withheld From
Gross Pay
General
Journal
The employee's federal income taxes withheld by the employer are $80 for this pay period. Assuming situation (a), compute
the taxes to be withheld from gross pay for this employee.
Note: Round your answers to 2 decimal places.
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
Federal income tax
September Earnings
Subject to Tax
Tax Rate
Tax Amount
$
80.00
<Taxes to be Withheld From Gross Pay
General Journal >
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