Peyton Company's payroll for the year is $$748,700.$ Of this amount, $$474,160$ is for wages paid in excess of $$7,000$ to each individual employee. The SUTA rate in Peyton Company's state is $2\mathrm{.}9\%$ on the first $$7,000$ of each employee's earnings. Peyton Company's payroll for the year is $$748,700.$ Of this amount, $$474,160$ is for wages paid in excess of $$7,000$

to each individual employee.

The SUTA rate in Peyton Company's state is $2\mathrm{.}9\%$ on the first $$7,000$ of each employee's earnings.

REQUIRED:

a$.$ Compute net FUTA tax

b$.$ Compute net SUTA tax

c$.$ Compute total unemployment taxes

Using formulas and cell references, enter the appropriate formulas in the green entry cells. Transfer the

numeric amounts for the green entry cells into the appropriate fields in CNOWv$2$ for grading.

This spreadsheet has been formatted to round numbers to the nearest cent. For example, $17\mathrm{.}651\mathrm{.}5=$

$26\mathrm{.}475.$ The amount will display and hold $26\mathrm{.}48,$ not $26\mathrm{.}475.$ There is no need to use Excel's rounding

function. Since the SUTA rates change at the end of each year, the available $2023$ rates were used for FUTA and SUTA.

Note: For this textbook edition the rate $0\mathrm{.}6\%$ was used for the FUTA tax rate for employers.

Example $5-8$

Iqbal Company of Georgia had a FUTA taxable payroll of $$215,600$ and a SUTA taxable payroll of $$255,700$ with a $5\mathrm{.}6\%$ SUTA tax rate. The

company would pay unemployment taxes of:

FUTA $$215,6000\mathrm{.}006=$$$1,293\mathrm{.}60$

SUTA $$255,7000\mathrm{.}056=14,319\mathrm{.}20$

Total taxes $$15,612\mathrm{.}80$

Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of $4\mathrm{.}8\%$ on the first

$$12,000$ of each employee's earnings. Both employees are paid the same amount each week $($ $$900)$ and have earned $$11,500$ up to this

week's pay. The unemployment taxes that the company must pay for this week's pay would be $$48.$

FUTA tax $($both over $$7,000)=$$$0\mathrm{.}00$

SUTA tax $($$$1,0000\mathrm{.}048)=$$$48\mathrm{.}00$

$($ $$500$ of each employee's pay is under the state taxable limit of $$12,000)$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Required:

Compute:

a$.$ Net FUTA tax

b$.$ Net SUTA tax

c$.$ Total unemployment taxes

Round your answers to the nearest cent.

a$.$ Net FUTA tax

$

b$.$ Net SUTA tax

c$.$ Total unemployment taxes

$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.