BMX Company has one employee. FICA Social Security taxes are 6.20% of the first
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BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee. |
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Gross Pay through August |
Gross Pay for September |
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a. |
$ |
5,900 |
$ |
2,400 |
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b. |
17,700 |
3,100 |
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c. |
99,000 |
11,100 |
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Compute BMX’s amounts for each of the above four taxes as applied to the employee’s gross earnings for September under situation (a),(b), and (c). (Round your answers to 2 decimal places.) |
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