Required information Use the following information for the E

Required information Use the following information for the Exercises below [The following information applies to the questions displayed belowj BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee Gross Pay for September $ 1,700 4,000 9,900 Gross Pa through August a. $6,400 20,100 114,100 Exercise 11-6 Payroll-related journal entries LO P2 Assuming situation a, prepare the employer\'s September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee\'s federal income taxes withheld by the employer are $60 for this pay period. (Round your answers to 2 decimal places.)

Solution

Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Subject to Tax Tax Rate Tax Amount Federal income tax $60.00 FICA—Social Security 1700 6.20% 105.4 FICA—Medicare 1700 1.45% 24.65 Total taxes withheld 190.05 Date General Journal Debit Credit 30-Sep Salaries expense 1700 FICA—Social Security taxes payable 105.4 FICA—Medicare taxes payable 24.65 Employee federal income taxes payable 60 Salaries payable 1509.95