CPP 5-1 (#1) Calculate and Record Employer Payroll Taxes

Calculate employer's total FUTA and SUTA tax. As TCLH Industries operates in North Carolina, assume a SUTA tax rate of 1.2% and a taxable earnings threshold of $23,100. Current period taxable earnings for FUTA and SUTA taxes are the same as those for FICA taxes. Year-to-date taxable earnings for FUTA and SUTA taxes, prior to the current pay period, are as follows:

Zachary Fox: $0

Calvin Bell: $20,478.57

David Alexander: $198,450

Michael Sierra: $117,600

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1: Z. Fox

FUTA tax = $ SUTA tax = $

2: C. Bell

FUTA tax = $ SUTA tax = $

3: D. Alexander

FUTA tax = $ SUTA tax = $

4: M. Sierra

FUTA tax = $ SUTA tax = $