Payroll Register

The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program.

Complete the following step:

1. Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay).

Note: Round your final answers to nearest cent.

KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS									NET PAY
Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Carson, F.	$700.00	$43.40	$10.15	$60.00	$21.49	$	$21.00	$20.00
Wilson, W.	897.04	55.62	13.01	92.00	27.54		26.91	50.00
Utley, H.	678.75	42.08	9.84	26.00	20.84		20.36	40.00
Fife, L.	877.10	54.38	12.72	29.00	26.93		26.31	50.00
Smith, L.	790.00	48.98	11.46	62.00	24.25		23.70	20.00
Fay, G.	539.15	33.43	7.82	4.00	16.55		16.17	40.00
Robey, G.	623.08	38.63	9.03	---	19.13		18.69	50.00
Schork, T.	773.08	47.93	11.21	64.00	23.73		23.19	60.00
Hardy, B.	666.11	41.30	9.66	2.00	20.45		19.98	30.00
Kipley	1,000.00	62.00	14.50	14.00	30.70		30.00	80.00
Totals		$467.75	$109.40	$353.00	$231.61	$	$226.31	$440.00			----

Employer Register

The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service.

Complete the following steps:

1. Net FUTA tax: Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employees gross earnings is subject to the FUTA tax. (The employer rate is 0.6%).
2. SUTA tax: Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employees earnings.

KIPLEY COMPANY, INC. Employer Register Payroll Taxes
	Earnings	OASDI	HI	FUTA	SUTA
Totals	$	$467.75	$109.39	$45.27	$