Question

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. $ 6,600 $ 500 b. 2,100 2,200 c. 122,300 8,200

Answer 1

Gross Pay through August 31 Gross Pay for September

A. $6,600 $500

B. $2,100 $2,200

C. $122,300 $8,200

For A)

Taxes to be withheld from employee:

FICA - Social Security = $500 x 6.2% = $31

FICA - Medicare = $500 x 1.45% = $7.25

Taxes to be paid by employer:

FICA - Social Security = $500 x 6.2% = $31

FICA - Medicare = $500 x 1.45% = $7.25

FUTA = ($7,000 - $6,600) x 0.6% = $2.40

SUTA = ($7,000 - $6,600) x 5.4% = $21.60

B)

Taxes to be withheld from employee:

FICA - Social Security = $2,200 x 6.2% = $136.40

FICA - Medicare = $2,200 x 1.45% = $31.90

Taxes to be paid by employer:

FICA - Social Security = $2,200 x 6.2% = $136.40

FICA - Medicare = $2,200 x 1.45% = $31.90

FUTA = $2,200 x 0.6% = $13.20

SUTA = $2,200 x 5.4% = $118.80

C)

Taxes to be withheld from employee:

FICA - Social Security = ($128,400 - $122,300) x 6.2% = $378.20

FICA - Medicare = $8,200 x 1.45% = $118.90

Taxes to be paid by employer:

FICA - Social Security = ($128,400 - $122,300) x 6.2% = $378.20

FICA - Medicare = $8,200 x 1.45% = $118.90

FUTA = $0

SUTA = $0