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 below 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 1,70e 4,000 9,900 Gross Pay through August a. $ 6,400 20,100 c. 114,100 b. Exercise 11-7 Payroll-related journal entries LO P3 Assuming situation a, prepare the employer\'s September 30 journal entries to record the employer\'s payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.)

Solution

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Situation a
Employer Payroll Taxes	September Earnings Subject to Tax	Tax Rate	Tax Amount
Social Security Tax	$                           1,700.00	6.20%	$        105.40
Medicare Tax	$                           1,700.00	1.45%	$          24.65
SUTA	$                              600.00	2.90%	$          17.40
FUTA	$                              600.00	0.60%	$            3.60