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III eTextbook: Payroll Accounting 2020 Quick Tour Print Search Annotations Accessibility Bookmark 5-12B. LO 4 See Example 5-10 on page 5-16 The following unemployment tax
III eTextbook: Payroll Accounting 2020 Quick Tour Print Search Annotations Accessibility Bookmark 5-12B. LO 4 See Example 5-10 on page 5-16 The following unemployment tax rate schedule is in effect for the calendar year 2020 in State A, which uses the reserve-ratio formula in determining employer contributions: Contribution Rate 5.09 5.59 Reserve Ratio 0.0% or more, but less than 10% 10% or more, but loss than 1.25 12 or more, but less than 1,4% 1.4 or more, but less than 1.0 Los or more, but loss 10% or more buttons 20% 2.0% of more, but 25 22 or more, but les 24 24 or more, but less than 20% 2.6% of more, but less than 2.8% 28% or more, but less than 3.0% 30% or more, but less than 3.2 32 of more 49 4.3% 4.04 27 3:45 3.19 III eTextbook: Payroll Accounting 2020 TT Quick Tour Print Search Annotations Accessibility Bookmark 1.6. or more, but less man 1.8% 1.8% or more, but less than 20% 20% or more, but less than 22 22 or more, but less than 24% 24% or more, but less than 20% 28 or more, but less than 28 28% or more, but less than 3.0% 30%. or more, but less than 32 3.2 or more 40 Conrad Company, which is located in State A, had an average annual payroll of $1,150,000 for the three 12-month periods ending on June 30, 2019 (the computation date for the tax year 2020). As of June 30, 2019 the total contributions that had been made to Conrad Company's reserve account, in excess of the benefits charged, amounted to $21,560. Compute: a Conrad Company's reserve ratio for 2019 b 2020 contribution rate for the company % 6. Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions $ d. Tax savings realized by the company, taking into consideration the voluntary contribution made in (c) if the taxable payroll in 2020 is $1,295,000 $
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