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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.

Respuesta :

The BMX tax for situation A, B and C are respectively calculated as; $282.3, $327.6 and $1600.4.

How to Calculate Social Security taxes?

We are given;

When the FICA Social Security = 6.2% of the first $128,400

Then FICA Medicare = 1.45% of gross pay.

Also, FUTA = 0.6%

Then SUTA = 5.4% of the first $7,000 paid

Now, Gross Pay through August 31 -----Gross Pay for September

A ⇒ $5,100 ⇒ $2,200

B ⇒ 2,300 ⇒ $2,400

C ⇒ 122,700 ⇒ 8,600

In case of A;

FICA is calculated by multiplying the tax rate by the corresponding amount;

FICA social security tax = $2,200 * 0.062 = $136.4

FICA Medicare = $2,200 * 0.0145 = $31.90

FUTA and also SUTA are calculated by multiplying the excess amount by the respective tax rate.

FUTA taxes = ($7,000 - $5,100) * 0.006 = $11.40

SUTA taxes = ($7,000 - $5,100) * 0.054 = $102.60

BMX tax in situation A = $136.4 + $31.90 + $11.40 + $102.60

BMX Tax = $282.3

In case B;

The gross pay is multiplied by the respective tax rate in this situation because the employee has not reached $7,000 in wages.

FICA social security tax = $2,400 * 0.062 = $148.8

FICA Medicare = $2,400 * .0145 = $34.80

FUTA taxes = $2,400 * 0.006 = $14.40

SUTA taxes = $2,400 * 0.054 = $129.6

BMX tax in situation B = $148.8 + $34.80 + $14.40 + $129.6

BMX Tax = $327.6

In case of C;

The maximum amount of wages subject to social security tax is $128,400. Thus;

FICA social security tax = ($128,400 - $122,700) * 0.062 = $353.40

FICA Medicare: $8,600 * 0.0145 = $1247.00

Total taxes for BMX = $353.40 + $1247.00 = $1600.4

Read more baout Calculating Social security at; https://brainly.com/question/3521473

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