PSa 5-2 Determine the Taxable Earnings Subject to FUTA Tax

For each of the described pay periods, determine the taxable earnings subject to FUTA tax:

NOTE:For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:

A business employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,700, $8,000, and $1,000. During the current pay period, these employees earn $1,700, $3,320, and $2,700, respectively.

Taxable earnings subject to FUTA tax = $

2:

A business employs two individuals, whose taxable earnings to date (prior to the current pay period) are $2,400, and $7,200. During the current pay period, these employees earn $1,250 and $750, respectively.

Taxable earnings subject to FUTA tax = $

3:

A business employs three individuals, whose taxable earnings to date (prior to the current pay period) are $26,700, $4,400, and $6,850. During the current pay period, these employees earn $2,320, $2,550, and $3,100, respectively.

Taxable earnings subject to FUTA tax