Question
Palco Co., which has a taxable payroll of $1,200,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because
Palco Co., which has a taxable payroll of $1,200,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the companys state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Palco Co.?
a.$139,200
b.$98,400
c.$48,000
d.$33,600
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Financial & Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
9781133607618, 978-1285868776
