Question

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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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 paid to its employee.
Gross Pay through August 31 Gross Pay for September
a. $ 5,100 $ 2,200
b. 2,300 2,400
c. 122,700 8,600
Computing payroll taxes LO P2, P3 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.)

Answer 1

social security medicare futa suta total

6.2% 1.45% 0.6% 5.4%

first $128,400 first $7,000

a) $136.40 $31.90 $11.40 $106.40 $286.10

b) $148.80 $34.80 $14.40 $134.40 $332.40

c) $353.40 $124.70 $0 $0 $478.10