bmx company has one employee. fica social security taxes are 6.2% of the first $137,700 paid to its…

bmx company has one employee. fica social security taxes are 6.2% of the first $137,700 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.\ngross pay through august 31 gross pay for september\na. $6,200 $1,600\nb. 2,200 2,300\nc. 133,100 9,700\nexercise 11 - 8 (algo) payroll - related journal entries lo p2\nassuming situation (a), prepare the employers september 30 journal entry to record salary expense and its related payroll liabilities for this employee. the employees federal income taxes withheld by the employer are $80 for this pay period.\ncomplete this question by entering your answers in the tabs below.\ntaxes to be withheld from gross pay general journal\nthe employees federal income taxes withheld by the employer are $80 for this pay period the taxes to be withheld from gross pay for this employee. note: round your answers to 2 decimal places.\ntaxes to be withheld from gross pay (employee - paid taxes)\nseptember earnings subject to tax tax rate tax amount\nfederal income tax $ 80.00

bmx company has one employee. fica social security taxes are 6.2% of the first $137,700 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.\ngross pay through august 31 gross pay for september\na. $6,200 $1,600\nb. 2,200 2,300\nc. 133,100 9,700\nexercise 11 - 8 (algo) payroll - related journal entries lo p2\nassuming situation (a), prepare the employers september 30 journal entry to record salary expense and its related payroll liabilities for this employee. the employees federal income taxes withheld by the employer are $80 for this pay period.\ncomplete this question by entering your answers in the tabs below.\ntaxes to be withheld from gross pay general journal\nthe employees federal income taxes withheld by the employer are $80 for this pay period the taxes to be withheld from gross pay for this employee. note: round your answers to 2 decimal places.\ntaxes to be withheld from gross pay (employee - paid taxes)\nseptember earnings subject to tax tax rate tax amount\nfederal income tax $ 80.00

Answer

Explanation:

Step1: Calculate FICA - Social Security tax

The cumulative gross pay through August 31 is $6,200 and September gross pay is $1,600. The total cumulative pay ($6,200 + $1,600 = $7,800) is still below the $137,700 limit for Social - Security tax. So, the FICA - Social Security tax is calculated as 6.2% of the September gross pay. $1,600\times0.062=$99.20$.

Step2: Calculate FICA - Medicare tax

The FICA - Medicare tax is 1.45% of the gross pay. For September's gross pay of $1,600, the FICA - Medicare tax is $1,600\times0.0145 = $23.20$.

Step3: Calculate FUTA tax

The cumulative pay through September ($6,200 + $1,600 = $7,800) is above the $7,000 limit for FUTA tax. So, the FUTA tax is calculated on the amount up to the limit. Since the pay through August 31 is $6,200, the additional amount subject to FUTA in September is $[SSE Completed, Client Connection Error][SSE onError error]