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 Gross Pay for September a. $ 6,600 $ 500 b. 18,400 2,300 c. 112,400 8,200 ________________________________________ Assuming situation a, prepare the employerâs September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employeeâs federal income taxes withheld by the employer are $80 for this pay period. (Round your answers to 2 decimal places.)
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 Gross Pay for September a. $ 6,600 $ 500 b. 18,400 2,300 c. 112,400 8,200 ________________________________________ Assuming situation a, prepare the employerâs September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employeeâs federal income taxes withheld by the employer are $80 for this pay period. (Round your answers to 2 decimal places.)
Related questions
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 | Gross Pay for September | |
| a. | $ 6,400 | $ 800 |
| b. | $ 18,200 | $ 2,100 |
| c. | $ 112,200 | $ 8,000 |
Compute BMXâs amounts for each of these four taxes as applied to the employeeâs gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)
a.)
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | |||
| FICA-Medicare | |||
| FUTA | |||
| SUTA |
b.)
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | |||
| FICA-Medicare | |||
| FUTA | |||
| SUTA |
c.)
| Tax | September Earnings Subject to Tax | Tax Rate | Tax Amount |
| FICA-Social Security | |||
| FICA-Medicare | |||
| FUTA | |||
| SUTA |
d.) Assuming situation a, prepare the employerâs September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employeeâs 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 Earnings Subject to Tax | Tax Rate | Tax Amount | |
| Federal income tax | |||
| ------------------------- | ---------------------------------------------- | ----------- | Total: |
e. Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.
| DATE | GENERAL JOURNAL | DEBIT | CREDIT |
| Sep 30 | |||
f.) Assuming situation a, prepare the employerâs September 30 journal entries to record the employerâs payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.)
| Employer Payroll Taxes | September earnings subject to tax | Tax Rate | Tax Amount |
| ------------------------------ | --------------------------------------------- | ----------- | Total: |
g.)
| DATE | GENERAL JOURNAL | DEBIT | CREDIT |
| Sep 30 | |||
MRI Company has one employee. FICA Social Security taxes are6.20% of the first $106,800 paid to its employee, and FICA Medicaretaxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.80% andSUTA taxes are 2.90% of the first $7,000 paid to its employee. |
| Gross Pay through August | Gross Pay for September | |||||||||
| a. | $ | 6,300 | $ | 1,500 | ||||||
| b. | 18,900 | 2,900 | ||||||||
| c. | 103,000 | 11,200 | ||||||||
Compute MRIâs amounts for each of the above four taxes asapplied to the employeeâs gross earnings for September undersituation (a). (Round your answers to 2 decimal places.Omit the "$" sign in your response) |
| Tax | |
| FICAâSocial Security | $ |
| FICAâMedicare | $ |
| FUTA | $ |
| SUTA | $ |
Compute MRIâs amounts for each of the above four taxes asapplied to the employeeâs gross earnings for September undersituation (b). (Leave no cells blank - be certain to enter"0" wherever required. Round your answers to 2 decimal places. Omitthe "$" sign in your response) |
| Tax | |
| FICAâSocial Security | $ |
| FICAâMedicare | $ |
| FUTA | $ |
| SUTA | $ |
Compute MRIâs amounts for each of the above four taxes asapplied to the employeeâs gross earnings for September undersituation (c). (Leave no cells blank - be certain to enter"0" wherever required. Round your answers to 2 decimal places. Omitthe "$" sign in your response) |
| Tax | |
| FICAâSocial Security | $ |
| FICAâMedicare | $ |
| FUTA | $ |
| SUTA | $ |
