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 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 $ 5,600 2,550 123,200 Gross Pay for September $1,500 2,650 9,100 su Assuming situation (a), prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Payroll Taxes Expense General Journal Compute the payroll taxes expense. (Round your answers to 2 decimal places.) Employer Payroll taxes Tax Amount $ September earnings Tax Rate subject to tax 1,500.00 6.20% 1,500.00 1.45% 0.60% 5.40% Total Payroll Taxes Expense FICA—Social Security FICA—Medicare FUTA SUTA 93.00 21.75 $ 114.75

I need to figure out the September earnings subject to tax for FUTA & SUTA. And also the general journal.

Answer 1

BMX Company Employer Payroll taxes FICA Social Security FICA Medicare FUTA SUTA September Earnings Subject to Tax 1500 1500 1400 1400 Tax Rate 6.20% 1.45% 0.60% 5.40% Tax Amount 93 21.75 8.4 75.6 Journal Enteries Date Paticulars Sep-30 Payroll taxes expense a/c Dr. TO FICA-Social sec. taxes payable TO FICA-Medicare taxes payable To Federal unemployment taxes payable To State unemployment taxes payable Debit in $ Credit in $ 198.75 93 21.75 8.4 75.6 7000 - 5600 = 1400