value: 2.20 points Exercise 9-7 Payroll-related journal entries LO P3 BMX Compan

Question

value: 2.20 points Exercise 9-7 Payroll-related journal entries LO P3 BMX Company has one employee, FICA Social Security taxes are 6.2% of the first $117,000 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 $825 Prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) Employee A: September earnings subject to tax Employer Payroll taxes Tax Rate Tax Amount View transaction list Journal entry worksheet Record the employer's September 30 payroll taxes expense and its related liabilities Note: Enter debits before credits.

Explanation / Answer

Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount FICA-Social Security 825 6.20% 51.15 FICA-Medicare 825 1.45% 11.96 FUTA 400 0.60% 2.40 SUTA 400 2.90% 11.60 Total Payroll Taxes Expense 77.11 Date General Journal Debit Credit Sep. 30 Payroll taxes expense 77.11 FICA—Social security taxes payable 51.15 FICA—Medicare taxes payable 11.96 Federal unemployment taxes payable 2.40 State unemployment taxes payable 11.60

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