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 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 are 5.4-% of the first $7,000 paid to its employee.

Gross pay through 8/31 Gross pay for September

A	5,400	2,400
B	2,450	2,550
C	123,000	8,900

Compute BMXS amount for each of these four taxes as applied to employees gross earnings for September under each of three seperate situations a,b,c

Tax September Earnings Tax Rate Tax amount   

Fica-Social Security

Fica-Medicare

FUTA

SUTA

B)

Tax September Earnings Tax rate Tax Amount

Fica-Social security

fica-medicare

futa

suta

c)

Tax September Earnings Tax Rate Tax amount

Fica-Social Security

Fica Medicare

FUTA

SUTA

Answer 1

a)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2400	6.20%	148.80
FICA-Medicare	2400	1.45%	34.80
FUTA	1600	0.60%	9.60
SUTA	1600	5.40%	86.40
b)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	2550	6.20%	158.10
FICA-Medicare	2550	1.45%	36.98
FUTA	2550	0.60%	15.30
SUTA	2550	5.40%	137.70
c)
Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA-Social Security	5400	6.20%	334.80
FICA-Medicare	8900	1.45%	129.05
FUTA	0	0.60%	0.00
SUTA	0	5.40%	0.00
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-5400 = $1600
Note: Earnings taxable for Social Security in (c) = 128400-123000 = $5400