Question

Required information The following information applies to the questions displayed below) BMX Company has one employee. FICA Social Security taxes are 62% 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 $7000 paid to its employee Gross Pay through August 31 $ 5.400 2.450 123,000 Gross Pay for September $ 2.000 2.550 8,900 b. Assuming situation related liabilities , prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its Complete this question by entering your answers in the tabs below. Payroll Taxes General Journal Compute the payroll taxes expense. (Round your answers to 2 decimal places.) Employer Payroll taxes Tax Rate Tax Amount September earnings subject to tak 2.400.00 FICA A Social Security care PUTA

Answer 1

In the books of BMX Company
Date	General journal	Debit	Credit
Sep-30	Payroll tax expense	$        279.60
	FICA-Medicare tax payable		$   34.80
	FICA -Social Security tax payable		$ 148.80
	Federal Unemployment taxes payable		$      9.60
	State Unemployment taxes payable		$   86.40
	(to record employer taxes payable on payroll)
Explanation-
		Subject to tax	Rate	Amount
	FICA-Medicare tax payable	$           2,400	1.45%	$   34.80
	FICA -Social Security tax payable	$           2,400	6.20%	$ 148.80
	Federal Unemployment taxes payable (7000-5400)	$           1,600	0.60%	$      9.60
	State Unemployment taxes payable (7000-5400)	$           1,600	5.40%	$   86.40