carne company has paid wages of $4,000 to an employee in State A. During the year, the employee is transferred to state 8, which has a $7,000 caxable salary limitation for its state unemployment tax. The company has a credit of $4,000 against this $7,000 dimit. Thus, the company has to pay State B's unemployment tax on only the next $3,000 of wages earned by that worker in State B during the remainder of the calendar year n April of the current year, Steelman Press Company transferred Ken Sherm from its factory in Louisiana to its plant in Florida. The company's SUTA tax rates based on its experience ratings are 3.2% in Louisiana and 3.8% in Florida. The taxable wage limits are $7,700 in Louisiana and $7,000 in Florida. This year, Stoelman Press Company paid Ken Sherm wages of $14,190, $4,950 were paid in Louisiana and the remainder in Florida, Compute the following: round your answers to the nearest cent. a. Amount of SUTA tax the company must pay to Louisiana on Sherm's wages $ b. Amount of SUTA tax the company must pay to Florida on Sherm's wages c. Amount of the net FUTA tax on Sherm's wages Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Jake Gore worked for two different employers. Until May, he worked for Wonderman Construction Company in Kansas City, Kansas, and carrud $21.500. The state unemployment rate for Wonderman is 4.6%. He then changed jobs and worked for Buxmont Improvement Company in Mobile, Alabama, and earned 33,100 for the rest of the year. The state unemployment rate for Buxmont is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by each company Round your answers to the nearest cent. Use Figure 5.1 to determine SUTA caps in Alabama and Kansas. a. Wonderman Construction Company b. Buxmont Improvement Company DU Print Item 1. The Iqbal Company of Georgia had a FUTA taxable payroll of $215,500 and a SUTA taxable payroll of $255,700 with a 5,6 percent SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 x 0.006 - $ 1,293.60 SUTA $255,700 x 0.056 14,319.20 Total taxes $15,612.80 2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employee's earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week's pay. The unemployment taxes that the company must pay for this week's pay would be $48. FUTA tax (both over $7,000) - $0.00 SUTA tax ($1,000 x 0.048) = $48.00 ($500 of each employee's pay is under the state taxable limit of $12,000) Shoupe Company was subject to the New Jersey state unemployment tax of 5.1%. The company's taxable wages for FUTA were $93,400 and for SUTA, 5194,300 Compute the following; round your answers to the nearest cent. a. SUTA tax that Shoupe Company would pay to the state of New Jersey b. Net FUTA tax C. Amount of employees' unemployment tax (use the employee's tax rate shown in Figure 5.1.) 1. The Iqbal Company of Georgia had a PUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 X 0.006 - $ 1,293.60 SUTA $255,700 * 0.056 14,319.20 Total taxes $15,612.80 2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employee's earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week's pay. The unemployment taxes that the company must pay for this week's pay would be 548 FUTA taxIboth over $7,000) - $0.00 SUTA tax ($1,000
