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Please show work in excel! The following unemployment tax rate schedule is in effect for the calendar year 2016 in State X, which uses the
Please show work in excel!
The following unemployment tax rate schedule is in effect for the calendar year 2016 in State X, which uses the reserve-ratio formula in determining employer contributions: Reserve Ratio Contribution Reserve negative.......................................... 7.3% 0.0% or more, but less than 1.0%.......................6.8% 1.0% or more, but less than 2.0%.......................6.5% 2.0% or more, but less than 3.0%.......................6.2% 3.0% or more, but less than 4.0%.......................5.9% 4.0% or more, but less than 5.0%.......................5.5% 5.0% or more.......................................5.0% Big Company, which is located in State X. had an average annual payroll of $603,000 for the three 12-month periods ending on September 30. 2015. As of September 30.2015. the total contributions that had been made to Big Company's reserve account in excess of benefits charged. amounted to $11,000. Compute: a) Big Company's reserve ratio for 2016 ___________________ b) 2016 SUTA combination rate for the company _____________________ c) Smallest contribution that the company can make in order to reduce its tax rate if State X permits voluntary contributions ____________________________ d) Tax savings, if any, realized by the company, taking into consideration the voluntary contributions made in (c) if the taxable payroll in 2016 is $710,000Step by Step Solution
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