Chapter 5 Template
5-1A.
During the year, Plum Company has a SUTA tax rate of 4.8%.
The taxable payroll for the year for FUTA and SUTA is
$123,400. Compute:
a. Net FUTA tax ............................................... $ 987.20
b. Net SUTA tax ............................................... $ 5,923.20
c. Total unemployment taxes ............................ $ 6,910.40
5-2A.
Peyton Company’s payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company’s state is 2.9% on the first $7,000 of each employee’s earnings.
Compute:
a. Net FUTA tax ............................................... $ 2,126.32
b. Net SUTA tax ............................................... $ 7,707.91
c. Total unemployment taxes ............................ $ 9,834.23
5-3A.
Garrison Shops had a SUTA tax rate of 3.7%. The state’s tax- able limit was $8,000 of each employee’s earnings. For the year,
Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute:
a. Net FUTA tax ............................................... $ 543.20
b. Net SUTA tax ............................................... $ 3,104.30
5-4A.
Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:
1. Under SUTA for Illinois on taxable payroll of $18,000, the con- tribution rate is 4%.
2. Under SUTA for Indiana on taxable payroll of $24,000, the con- tribution rate is 2.65%.
3. Under SUTA for Ohio on taxable payroll of $79,000, the contri- bution rate is 2.9%.
4. Under FUTA, the taxable payroll is $103,500.
Compute:
a. SUTA taxes paid to Illinois ............................ $ 720
b. SUTA taxes paid to Indiana .......................... $ 636
c. SUTA taxes paid to Ohio .............................. $ 2291
d. FUTA taxes paid ........................................... $ 828
5-5A.
Donner Company began
During the year, Plum Company has a SUTA tax rate of 4.8%.
The taxable payroll for the year for FUTA and SUTA is
$123,400. Compute:
a. Net FUTA tax ............................................... $ 987.20
b. Net SUTA tax ............................................... $ 5,923.20
c. Total unemployment taxes ............................ $ 6,910.40
5-2A.
Peyton Company’s payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company’s state is 2.9% on the first $7,000 of each employee’s earnings.
Compute:
a. Net FUTA tax ............................................... $ 2,126.32
b. Net SUTA tax ............................................... $ 7,707.91
c. Total unemployment taxes ............................ $ 9,834.23
5-3A.
Garrison Shops had a SUTA tax rate of 3.7%. The state’s tax- able limit was $8,000 of each employee’s earnings. For the year,
Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute:
a. Net FUTA tax ............................................... $ 543.20
b. Net SUTA tax ............................................... $ 3,104.30
5-4A.
Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:
1. Under SUTA for Illinois on taxable payroll of $18,000, the con- tribution rate is 4%.
2. Under SUTA for Indiana on taxable payroll of $24,000, the con- tribution rate is 2.65%.
3. Under SUTA for Ohio on taxable payroll of $79,000, the contri- bution rate is 2.9%.
4. Under FUTA, the taxable payroll is $103,500.
Compute:
a. SUTA taxes paid to Illinois ............................ $ 720
b. SUTA taxes paid to Indiana .......................... $ 636
c. SUTA taxes paid to Ohio .............................. $ 2291
d. FUTA taxes paid ........................................... $ 828
5-5A.
Donner Company began