Question

[The following information applies to the questions displayed below.] 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 $ 5,800 2,650 123,400 Gross Pay for September $1,400 2,750 9,300 Exercise 9-6 Payroll-related journal entries LO P2 Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities or this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay General Journal I The employee's federal income taxes withheld by the employer are $90 for this pay period. Compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.) Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Tax Rate Tax Amount Subject to Tax Federal income tax $ 90.00 < Taxes to be Withheld From Gross Pay General Journal >

Answer 1

Date	Journal	Debit	Credit
September 30	Salary Expenses Dr	$ 1400
	Payroll tax expenses Dr	$281.1
	to Cash		$1400
	to Federal withheld tax payable		$90
	to FICA Social Security taxes payable		$86.8
	to FICA medicare taxes payable		$20.3
	to FUTA taxes payable		$8.4
	to SUTA taxes payable		$75.6