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 net FUTA tax rate for employers.

Example $5-6$

Park Company has a $$70,000$ federal and state taxable payroll and has earned a reduced state tax rate timely, the FUTA tax calculation is as follows:

Gross FUTA tax $($$$70,0000\mathrm{.}060)$

Less $90\%$ credit for state taxes paid late $($$$70,0000\mathrm{.}0490\%)$

$$2,520$

Less additional credit for state tax if rate were $5\mathrm{.}4\%[$$$70,000(0\mathrm{.}054-0\mathrm{.}04)]$

$980$

Total credit

Net FUTA tax

If Park Company had made its SUTA payments before the due date of Form $940,$ the credit for the paym would have provided a total credit of $$3,780$ and a FUTA tax savings of $$280.$

Peroni Company paid wages of $$170,900$ this year. Of this amount, $$114,000$ was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is $3\mathrm{.}1\%$ for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form $940$ filing date.

Compute the following; round your answers to the nearest cent.

a$.$ Amount of credit the company would receive against the FUTA tax for its SUTA contributions

$

b$.$ Amount that Peroni Company would pay to the federal government for its FUTA tax

$

c$.$ Amount that the company lost because of its late payments