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 Gross Pay for September a. $ 6,600 $ 500 b. 2,100 2,200 c. 122,300 8,200

          Gross Pay through August 31            Gross Pay for September

A.                     $6,600                                                     $500

B.                      $2,100                                                  $2,200

C.                 $122,300                                                   $8,200

For A)

Taxes to be withheld from employee:

FICA - Social Security  = $500 x 6.2% = $31

FICA - Medicare  = $500 x 1.45% = $7.25

Taxes to be paid by employer:

FICA - Social Security  = $500 x 6.2% = $31

FICA - Medicare  = $500 x 1.45% = $7.25

FUTA  = ($7,000 - $6,600) x 0.6% = $2.40

SUTA = ($7,000 - $6,600) x 5.4% = $21.60

B)

Taxes to be withheld from employee:

FICA - Social Security  = $2,200 x 6.2% = $136.40

FICA - Medicare  = $2,200 x 1.45% = $31.90

Taxes to be paid by employer:

FICA - Social Security  = $2,200 x 6.2% = $136.40

FICA - Medicare  = $2,200 x 1.45% = $31.90

FUTA  = $2,200 x 0.6% = $13.20

SUTA = $2,200  x 5.4% = $118.80

C)

Taxes to be withheld from employee:

FICA - Social Security  = ($128,400 - $122,300) x 6.2% = $378.20

FICA - Medicare  = $8,200 x 1.45% = $118.90

Taxes to be paid by employer:

FICA - Social Security  = ($128,400 - $122,300) x 6.2% = $378.20

FICA - Medicare  = $8,200 x 1.45% = $118.90

FUTA  = $0

SUTA = $0

answer; institution;