Prepare the employer september journal entry

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Question - 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.

 

Gross Pay through August 31

Gross Pay for September

a.

$5,400

$2,400

b.

2,900

3,000

c.

132,300

8,900

Assuming situation (a), prepare the employer's September 30 journal entry to record the employers payroll taxes expense and its related liabilities.

Reference no: EM133170810

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