Chapter 5 eBook Print Item Since the SUTA rates changes are made at the end of each year, the available 2021 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. Example 5-8 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: = $ 1,293.60 FUTA $215,600 x 0.006 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 (5900) 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 > 0.048) = $48.00 ($500 of each employee's pay is under the state taxable limit of $12,000) Hinsky Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $86,700 and for SUTA, $171,000. Compute the following; round your answers to the nearest cent. a. SUTA tax that Hinsky Company would pay to the state of Alaska $ b. Net FUTA tax $ C. Amount of employees' unemployment tax (use the employee's tax rate shown in Figure 5.1) Feedback Check My Work Previous Next Assignment Score: 50-99% All work saved. Email Instructor Save and Exit Submit Assignment for Grading FIGURE 5.1 Summary of State Unemployment Compensation Laws (2021) Warning: The provisions of the state laws we subject to change at any time. Bences (Excluding dependency allowances) Waiting Max. Min. Max. Period per per Duration (werk) Week Werk (web) $265 $45 26 1 370 56 26 1 210 00 20 1 451 81 26 1 450 40 25 1 1 TA 552 631 400 444 25 15 20 50 26 36 26 26 Bote 1 1 275 365 645 22 23 55 26 5 26 1 1 1 410 72 20 1 400 390 1 401 51 50 73 117 39 LIITIT 25 20 26 20 20 1 400 389 247 10 r 1 1 no 1 26 20 415 410 71 25 31 81 795 361 26 30 20 BOLIG 10 1 1 1 699 235 330 352 20 26 26 28 1 48 163 1 Size of Firm Contributors (Ostirst 57.000 unless (One employee otherwise indicated in specified rime and or size of Stale pyroll) Employer Min Max Employee ALABAMA weeks 0.65-63% on first $8.000 ALASKA any time 1.046-5.45. on first $43.600 0.5% on first $43 600 ARIZONA weeks 0.08% 20.6% ARKANSAS 10 days 0.3% -14% on first $10,000 CALIFORNIA Der $100 a 1.5-6.3% 1.25. on first $125.20 calendar a les COLORADO any time 0.714-964% on first $13.600 CONNECTICUT werky 1.04-635.on SI5.000 DELAWARE 2 weeks 0.3%-8.2% on first $1.500 DISTRICT OF y me 1.8-70% on first 59.000 COLUMBIA FLORIDA 20 weeks 0.29-5495 GEORGIA 30 werks 0.04%-756%cft S950 HAWAII 0045-86% on fir 547 400 0.50mm weekly wages of 51,102.50 not to exceed $5.51 per week (disability ins) IDAHO 20 weeks or $300 0.205.4% on first $13.000 in any calendar que ILLINOIS 20 weeks 0.675-6875% on for $12.900 INDIANA 2 weeks 0.5-7.45.on first 59.500** TOWA 2 weeks 0.046-7.55.en for $32.400 KANSAS 20 weeks 004-2.85 on first 514 000 KENTUCKY 20 weeks 0.396-9.0% on first $11,100 LOUTSTANA 20 werk 00% -on first 57700 MAINE 20 weeks 0.49-5451% on fir S12.000 MARYLAND arytme 2.29-13.5% on first $8500 MASSACHUSETTS 13 werks 0.94%-1437% on first $15.000 MICHIGAN 20 weeks et 0.00-10.30 $9.500 $1,000 in $ Calendar year MINNESOTA 2 weeks 0.249.19. i $35.000 MESSISSIPPI weeks 0.24-5.81 on first $14.000 MISSOURI 20 weeks 0.044-5.45 on first 511,000 MONTANA Over $1,000 in 0.13-63' on first $35.900 current or pecede year NEBRASKA 20 werks 0.0745-3,4% on 39,000 NEVADA $225 in any 0.25 -54% on first $33,400 quarter NEW HAMPSHIRE 20 weeks 0.19-7.0% ont 514.000 NEW JERSEY $1,000 in any am 0.4% 3.4% on first $36.2004 1.173% (0.47% for year disability 0.705% for tel compromil lenemorkorce developed funds) on first $36,200 NEW MEXICO 20 weeks or $450 0.33-5.4" on first $27.000 in any quarter NEW YORK $300 in any 0.54-799 on first $11,800 0.5-imit $060 wels quarter NORTH CAROLINA 20 week 0.00 -5.76% 525.200" NORTH DAKOTA week 038-9 89 of 8.500 OHIO 20 weeks 0.399.JS on lius9.000 OKLAHOMA 2 weeks 004-25% first $24.000 OREGON 20 weeks 1.29-54% on first $43300 PENNSYLVANIA 13 werks or $225 2.3905911 0333% on fint $10,000+ 0.06 on total wages 16 a quarter any PUERTO RICO 1.29-5.446 0.3% on first $9.000 (disle day in RHODE ISLAND anyut 1.24-9,59% on first $2.000 135 on fire 574.000 disability in SOUTH CAROLINA any time 0.06 -5.46% on fast $34.000 SOUTH DAKOTA weeks 0.0%-9.3% on first $15.000 TENNESSEE 2 weeks 0.019-10.0% TEXAS werk 0.36"-636st 39,000 UTAH $140 t calendar 0.247.29. on first $38.500 quarter cent preceding Calendar year VERMONT 2 weeks 0.44-5.4. on first $14.100 % VIRGIN ISLANDS any titie 2.5 on 12.500 VIRGINIA 2 weeks 0.15-0.25on58,000 WASHINGTON any time 0.52-602% on first $56,500 WEST VIRGINIA 20 werks 1.59-8.5% on fire 512.000 WISCONSEN 2 weeks 0.09-120% on first $14.000 WYOMING $500 is current 0:48 -0.78 on fint 27.100 of preceding calendar year Scurce: Payroll Guide published by Thomson Reuters This is $1.500 in any calendar quarter in current preceding calendar year unless otherwise specified 2021 FUTA credit reduction state **Allon luntary contribution 1 414 426 30 16 262 26 more 427 BE 1 32 20 7320 731 1 1 441 26 1 44 100 26 1 20 1 1 350 640 493 ITIT 45 43 311 16 133 35 1 1 1 539 500 573 24 26 20 26 28 me 1 133 7 26 1 1 599 33 20 1 26 1 1 TIT 336 402 275 307 50 42 23 30 55 25 26 26 26 20 1 TI 1 33: 26 20 20 SOS 375 841 424 370 39 33 60 201 24 54 33 26 26 20 489 26 Chapter 5 eBook Print Item Since the SUTA rates changes are made at the end of each year, the available 2021 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. Example 5-8 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: = $ 1,293.60 FUTA $215,600 x 0.006 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 (5900) 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 > 0.048) = $48.00 ($500 of each employee's pay is under the state taxable limit of $12,000) Hinsky Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $86,700 and for SUTA, $171,000. Compute the following; round your answers to the nearest cent. a. SUTA tax that Hinsky Company would pay to the state of Alaska $ b. Net FUTA tax $ C. Amount of employees' unemployment tax (use the employee's tax rate shown in Figure 5.1) Feedback Check My Work Previous Next Assignment Score: 50-99% All work saved. Email Instructor Save and Exit Submit Assignment for Grading FIGURE 5.1 Summary of State Unemployment Compensation Laws (2021) Warning: The provisions of the state laws we subject to change at any time. Bences (Excluding dependency allowances) Waiting Max. Min. Max. Period per per Duration (werk) Week Werk (web) $265 $45 26 1 370 56 26 1 210 00 20 1 451 81 26 1 450 40 25 1 1 TA 552 631 400 444 25 15 20 50 26 36 26 26 Bote 1 1 275 365 645 22 23 55 26 5 26 1 1 1 410 72 20 1 400 390 1 401 51 50 73 117 39 LIITIT 25 20 26 20 20 1 400 389 247 10 r 1 1 no 1 26 20 415 410 71 25 31 81 795 361 26 30 20 BOLIG 10 1 1 1 699 235 330 352 20 26 26 28 1 48 163 1 Size of Firm Contributors (Ostirst 57.000 unless (One employee otherwise indicated in specified rime and or size of Stale pyroll) Employer Min Max Employee ALABAMA weeks 0.65-63% on first $8.000 ALASKA any time 1.046-5.45. on first $43.600 0.5% on first $43 600 ARIZONA weeks 0.08% 20.6% ARKANSAS 10 days 0.3% -14% on first $10,000 CALIFORNIA Der $100 a 1.5-6.3% 1.25. on first $125.20 calendar a les COLORADO any time 0.714-964% on first $13.600 CONNECTICUT werky 1.04-635.on SI5.000 DELAWARE 2 weeks 0.3%-8.2% on first $1.500 DISTRICT OF y me 1.8-70% on first 59.000 COLUMBIA FLORIDA 20 weeks 0.29-5495 GEORGIA 30 werks 0.04%-756%cft S950 HAWAII 0045-86% on fir 547 400 0.50mm weekly wages of 51,102.50 not to exceed $5.51 per week (disability ins) IDAHO 20 weeks or $300 0.205.4% on first $13.000 in any calendar que ILLINOIS 20 weeks 0.675-6875% on for $12.900 INDIANA 2 weeks 0.5-7.45.on first 59.500** TOWA 2 weeks 0.046-7.55.en for $32.400 KANSAS 20 weeks 004-2.85 on first 514 000 KENTUCKY 20 weeks 0.396-9.0% on first $11,100 LOUTSTANA 20 werk 00% -on first 57700 MAINE 20 weeks 0.49-5451% on fir S12.000 MARYLAND arytme 2.29-13.5% on first $8500 MASSACHUSETTS 13 werks 0.94%-1437% on first $15.000 MICHIGAN 20 weeks et 0.00-10.30 $9.500 $1,000 in $ Calendar year MINNESOTA 2 weeks 0.249.19. i $35.000 MESSISSIPPI weeks 0.24-5.81 on first $14.000 MISSOURI 20 weeks 0.044-5.45 on first 511,000 MONTANA Over $1,000 in 0.13-63' on first $35.900 current or pecede year NEBRASKA 20 werks 0.0745-3,4% on 39,000 NEVADA $225 in any 0.25 -54% on first $33,400 quarter NEW HAMPSHIRE 20 weeks 0.19-7.0% ont 514.000 NEW JERSEY $1,000 in any am 0.4% 3.4% on first $36.2004 1.173% (0.47% for year disability 0.705% for tel compromil lenemorkorce developed funds) on first $36,200 NEW MEXICO 20 weeks or $450 0.33-5.4" on first $27.000 in any quarter NEW YORK $300 in any 0.54-799 on first $11,800 0.5-imit $060 wels quarter NORTH CAROLINA 20 week 0.00 -5.76% 525.200" NORTH DAKOTA week 038-9 89 of 8.500 OHIO 20 weeks 0.399.JS on lius9.000 OKLAHOMA 2 weeks 004-25% first $24.000 OREGON 20 weeks 1.29-54% on first $43300 PENNSYLVANIA 13 werks or $225 2.3905911 0333% on fint $10,000+ 0.06 on total wages 16 a quarter any PUERTO RICO 1.29-5.446 0.3% on first $9.000 (disle day in RHODE ISLAND anyut 1.24-9,59% on first $2.000 135 on fire 574.000 disability in SOUTH CAROLINA any time 0.06 -5.46% on fast $34.000 SOUTH DAKOTA weeks 0.0%-9.3% on first $15.000 TENNESSEE 2 weeks 0.019-10.0% TEXAS werk 0.36"-636st 39,000 UTAH $140 t calendar 0.247.29. on first $38.500 quarter cent preceding Calendar year VERMONT 2 weeks 0.44-5.4. on first $14.100 % VIRGIN ISLANDS any titie 2.5 on 12.500 VIRGINIA 2 weeks 0.15-0.25on58,000 WASHINGTON any time 0.52-602% on first $56,500 WEST VIRGINIA 20 werks 1.59-8.5% on fire 512.000 WISCONSEN 2 weeks 0.09-120% on first $14.000 WYOMING $500 is current 0:48 -0.78 on fint 27.100 of preceding calendar year Scurce: Payroll Guide published by Thomson Reuters This is $1.500 in any calendar quarter in current preceding calendar year unless otherwise specified 2021 FUTA credit reduction state **Allon luntary contribution 1 414 426 30 16 262 26 more 427 BE 1 32 20 7320 731 1 1 441 26 1 44 100 26 1 20 1 1 350 640 493 ITIT 45 43 311 16 133 35 1 1 1 539 500 573 24 26 20 26 28 me 1 133 7 26 1 1 599 33 20 1 26 1 1 TIT 336 402 275 307 50 42 23 30 55 25 26 26 26 20 1 TI 1 33: 26 20 20 SOS 375 841 424 370 39 33 60 201 24 54 33 26 26 20 489 26