In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska

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In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Ohio. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Ohio. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Ohio. Compute:
a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages ....... $_______
b. Amount of SUTA tax the company must pay to Ohio on Porter's wages .............. $_______
c. Amount of the net FUTA tax on Porter's wages (Ohio is a credit reduction state-1.2%.) ..................................................................................................................................... $_______
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Payroll Accounting 2016

ISBN: 978-1337072649

26th edition

Authors: Bernard J. Bieg, Judith Toland

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