Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mi Casa Restaurants of Las Cruces, New Mexico, has the following employees as of December 31: Employee Name Annual Taxable Wages A. Shelby $ 34,900

Mi Casa Restaurants of Las Cruces, New Mexico, has the following employees as of December 31:

Employee Name Annual Taxable Wages
A. Shelby $ 34,900
M. Gomez $ 17,700
C. Wardly $ 25,500
E. Burgess $ 33,240
S. Black $ 31,200

Required:

The company's SUTA tax rate is 4.25 percent and the wage base is $11,000. Mi Casa Restaurants FUTA tax rate of 6 percent is subject to a 5.4 percent reduction and applies to the first $7,000 of employee wages. What is the annual amount of FUTA and SUTA taxes due for each employee?

Note: Round your answers for "SUTA Due" to 2 decimal places.

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

Operational Profitability Conducting Management Audits

Authors: Robert M. Torok, Patrick J. Cordon

1st Edition

0471172251, 978-0471172253

More Books

Students also viewed these Accounting questions

Question

Evaluate the importance of diversity in the workforce.

Answered: 1 week ago

Question

Identify the legal standards of the recruitment process.

Answered: 1 week ago