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In: Accounting
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.
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. | $ | 6,000 | $ | 1,500 | ||||||
| b. | 2,750 | 2,850 | ||||||||
| c. | 123,600 | 9,500 | ||||||||
rev: 05_16_2019_QC_CS-168714
Assuming situation (a), prepare the employer’s September 30 journal entries to record the employer’s payroll taxes expense and its related liabilities.
Solutions
Expert Solution
| Employer Payroll taxes |
September Earnings Subject to Tax |
Tax Rate | Tax Amount |
| FICA - Social Security | $ 1,500 | 6.20% | $ 93 |
| FICA - Medicare | $ 1,500 | 1.45% | $ 21.75 |
| FUTA | $ 1,000 ($7,000 (-) $ 6,000) |
0.60% | $ 6 |
| SUTA | $ 1,000 ($7,000 (-) $ 6,000) |
5.40% | $ 54 |
| Total taxes withheld | $ 174.75 |
| Date | General Journal | Debit | Credit |
| Sep-30 | Payroll taxes expense | $ 174.75 | |
| FICA - Social Security taxes payable | $ 93 | ||
| FICA - Medicare taxes payable | $ 21.75 | ||
| Federal unemployment taxes payable | $ 6 | ||
| State unemployment taxes payable | $ 54 | ||
| (To record the Payroll taxes expense and its related liabilities) |
ekkarill92 answered 3 years agoRelated Solutions
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
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.
$
5,000
$
2,100
b.
18,700
2,600
...
BMX Company has one employee FICA Social Security taxes are 6.2% of the first $128,400 paid...
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 BMC,its FUTA taxes are 0.6% and SUTA
taxes are 5.4-% of the first $7,000 paid to its employee
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 BMC,its FUTA taxes are 0.6% and SUTA
taxes...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid...
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 Payfor September
A. $ 5,9 00 a. $ 1,400
B. 3,400 b. 3,500
C.123,500 c. 9,400
Taxes to be Withheld From Gross Pay
(Employee-Paid Taxes)
September...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid...
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.
$
5,000
$
2,100
b.
2,250
2,350
c.
122,600
8,500
1a. Compute BMX’s amounts for each of these four taxes as
applied...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid...
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.
$
5,900
$
1,400
b.
2,700
2,800
c.
123,500
9,400
Compute BMX’s amounts for each of these four taxes as applied to...
6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of...
6.2% of the first $128,400 paid to each employee, and FICA
Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA
taxes are 5.4% of the first $7,000 paid to each employee.
Cumulative pay for the current year for each of its employees
follows.
Employee
Cumulative Pay
Employee
Cumulative Pay
Employee
Cumulative Pay
Ken S
$
5,600
Michelle W
$
149,500
Lori K
$
136,900
Tim V
46,400
Michael M
112,900
Kitty O
42,900
Steve S
93,000...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...
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.
$
5,300
$
2,600
b.
19,000
2,900
c.
113,000
8,800
Compute BMX’s amounts for each of these four taxes as applied to
the...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...
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
Exercise 9-5 Computing payroll taxes LO P2, P3
Compute BMX’s amounts for each...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...
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.
$
6,200
$
1,600
b.
19,900
3,800
c.
113,900
9,700
Assuming situation a, prepare the employer’s September 30
journal entries to record salary...
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid...
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.
$
5,100
$
2,200
b.
18,800
2,700
c.
112,800
8,600
Assuming situation a, prepare the employer’s September 30
journal entries to record salary...
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