Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Michigan. 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 $22,800; $2,700 were paid in Nebraska and the remainder in Michigan. Compute the following: round your answers to the nearest cent. (a.) Amount of SUTA tax the company must pay to Nebraska on Porter's wages $ 86.40 (b.) Amount of SUTA tax the company must pay to Michigan on Porter's wages $ 239.40 (c.) Amount of the net FUTA tax on Porter's wages

I am having a lot of trouble with part C, I've looked up other examples and tried the math, but it's just not giving me the correct answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics

Authors: Jay Thibodeau, Deborah Freier

4th edition

78025567, 978-0078025563

More Books

Students also viewed these Accounting questions