Question

Required information [The following information applies to the questions displayed below.) BMX Company has one employee, FICA Social Security taxes are 6.2% of the first $127.200 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, Its FUTA taxes are 3.1% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Gross Pay through August a. $ 6.400 2.000 120,900 Gross Pay for September $ 800 2,100 8,000 Assuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $80 for this pay period.

Answer 1

solut Given that Taxes to be with held from gross pay (Employee -paid Tamay) September cuanang subject Tax rate Tax amount I to tax Federal income tax FICA - Social Security $800.00 $80.00 fuq.60 16.20% FICA - Meda case taxe $800.00 1.45%, $11.60 $800.00 Total taxey withheld de $14:20 solated journal entry to record salaaich expense and paylovolt kiabaltieji Date . General journal Debit I caedit. I Sep30. | Salaries expense Employee Federal income tax $80.00 - payable PicA -Social Security tones FPCA – Medicase taxey payable $11.60 Salastey Paybleſ Gaass Salaay'. Dadurch 1658.80 14800 - $80 - $49.60 -16 (To second Qccrued Salaain and aelated Payroll pabilities $49.60

Note: 1 FICA social securities tax fica social security tax is payable on maximum wagey $ 127,200 ] So, before calculating the FICA - Social Security tare, we have to check whether the septmber earning along with cumulative earnings until Agust is exceeding $ 197,900 761 not Pif september laaring's + cumulatiue earning's entire August is exceeding' $127,200, then social security tax oC 127,900-eumimulative earning's until Augutt jx62% and if it ý not, then social security tax : Gaoss pay during septembeszx6.2% a) fica medicare tard Medicare tax is always payable on gross pay.