ny work mode : This shows what is correct or incorrect for the work you have com
ID: 2577221 • Letter: N
Question
ny work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate comple 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 for $ 6,100 19,800 113,800 $1,400 3,700 9,600 a. Assuming situation a, prepare the employer's September 30 journal entries to record the employer's payroll taxes expense an related liabilities. (Round your answers to 2 decimal places.) 3 Answer is complete but not entirely correct. er Payroll taxes tember earnings Tax Rate Tax Amount to tax 1.400.00 1.400.00 6.20% ) S 200.0001 0.60% 200.000 2.90% Total Payroll Taxes Expense 86.80 20.30 1.20 5.80 114.10 FUTA SUTAExplanation / Answer
ans)
Employee A
Employer payroll taxes September earnings subject to tax Tax rate Tax Amount
FICA - social security 1400 6.2% 86.8
(Full amt is subject to tax)
FICA-Medicare 1400 1.45% 20.3
(Full amount is subject to tax)
FUTA 900 0.6% 5.4
$500 is over the maximum
SUTA 900 2.9% 26.1
Total payroll taxes expnse 138.6
Date General journal Debit Credit
Sep 30 Payroll taxes expense 138.6
FICA Social security taxes payable 86.8
FICA- Medicare taxes payable 20.3
Federal unemployement taxes payable 5.4
State unemployement taxes payable 26.1
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