Less 90% credit for state taxes paid late ($70,000 x 0.04 x 90%) Less additional credit...

Transcribed Image Text:

Less 90% credit for state taxes paid late ($70,000 x 0.04 x 90%) Less additional credit for state tax if rate were 5.4% [$70,000 x (0.054 -0.04)] $2,520 980 Total credit 3,500 Net FUTA tax $ 700 If Park Company had made its SUTA payments before the due date of Form 940, the credit for the payments (4%) and the additional credit (1.4%) would have provided a total credit of $3,780 and a FUTA tax savings of $280. Peroni Company paid wages of $163,400 this year. Of this amount, $110,600 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent. a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions 5,629.54 V b. Amount that Peroni Company would pay to the federal government for its FUTA tax 1,227.66 X c. Amount that the company lost because of its late payments 342.86 Less 90% credit for state taxes paid late ($70,000 x 0.04 x 90%) Less additional credit for state tax if rate were 5.4% [$70,000 x (0.054 -0.04)] $2,520 980 Total credit 3,500 Net FUTA tax $ 700 If Park Company had made its SUTA payments before the due date of Form 940, the credit for the payments (4%) and the additional credit (1.4%) would have provided a total credit of $3,780 and a FUTA tax savings of $280. Peroni Company paid wages of $163,400 this year. Of this amount, $110,600 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent. a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions 5,629.54 V b. Amount that Peroni Company would pay to the federal government for its FUTA tax 1,227.66 X c. Amount that the company lost because of its late payments 342.86