BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900...
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Accounting
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 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.
Gross Pay through August 31
Gross Pay for September
a.
$
5,100
$
2,200
b.
2,600
2,700
c.
127,200
8,600
Exercise 9-9 (Algo) Payroll-related journal entries LO P3
Assuming situation (a), prepare the employers September 30 journal entry to record the employers payroll taxes expense and its related liabilities.
Employer Payroll taxes
September earnings subject to tax
Tax Rate
Tax Amount
Journal entry worksheet
Record the employer's September 30 payroll taxes expense and its related liabilities.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Sep 30
Answer & Explanation
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