Who do you figure this, set up in columns by different taxes?
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $110,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.
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Gross Pay through August |
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Gross Pay for September |
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| a. |
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$ |
6,400 |
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|
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$ |
800 |
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| b. |
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18,200 |
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|
|
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2,100 |
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| c. |
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103,800 |
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|
|
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8,000 |
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Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c).