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 for September Gross Pay through August 31 $ 6,300 1,700 119,000 a. b. $1,800 3,900 9,800 c. Assuming situation a, prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities.

Answer 1

Employer Payroll taxes	September earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	1800	6.20%	111.60
FICA-Medicare	1800	1.45%	26.10
FUTA	700	3.10%	21.70
SUTA	700	2.90%	20.30
Total Payroll Taxes Expense			179.70
Date	General Journal	Debit	Credit
Sep. 30	Payroll taxes expense	179.70
	FICA—Social security taxes payable		111.60
	FICA—Medicare taxes payable		26.10
	Federal unemployment taxes payable		21.70
	State unemployment taxes payable		20.30