Question

Required information The following information applies to the questions displayed below.) 1 of 2 BMX Company has one employee, FICA Social Security taxes are 6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee. Kipped Gross Pay through August $ 6.300 20,000 114,000 Grons Pay for September $1,800 3,900 9,800 int 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 $90 for this pay period. (Round your answers to 2 decimal places.) Taxes to be withheld From Gross Pay (Employee Paid Taxes) September Earnings Tax Rate Subject to Tax Tax Amount Federal income tax 90.00 ences

Answer 1

Situation a.

Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
	September Earnings Subject to Tax	Tax Rate	Tax Amount
Federal income tax			90.00
FICA Social Security taxes	1800	6.20%	111.60
FICA Medicare tax	1800	1.45%	26.10
			227.70

Date	General Journal	Debit	Credit
Sep. 30	Salaries Expense	1800.00
	Federal income tax payable		90.00
	FICA Social Security tax payable		111.60
	Medicare tax payable		26.10
	Salaries payable		1572.30