payroll accounting ch 5

Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers. Example 5-7 Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are: FUTA tax - $130,000 x 0.6% $ 780 SUTA tax - $210,000 x 0.9% 1,890 Total unemployment taxes $2,670 Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows: 1. Under SUTA for Massachusetts on taxable payroll of $18,000, the contribution rate is 4%. 2. Under SUTA for New Hampshire on taxable payroll of $24,000, the contribution rate is 6.65%. 3. Under SUTA for Maine on taxable payroll of $79,000, the contribution rate is 2.9% 4. Under FUTA, the taxable payroll is $103,500. Compute the following: a. SUTA taxes paid to Massachusetts b. SUTA taxes paid to New Hampshire C. SUTA taxes paid to Maine d. FUTA taxes paid INN