Question
Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA. Note: For
Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA.
Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.
Example 5-8
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The Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of:
FUTA $215,600 0.006 = $1,293.60 SUTA $255,700 0.056 = 14,319.20 Total taxes $15,612.80 -
Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employees earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this weeks pay. The unemployment taxes that the company must pay for this weeks pay would be $48. FUTA tax (both over $7,000) = $0.00 SUTA tax ($1,000 0.048) = $48.00 ($500 of each employees pay is under the state taxable limit of $12,000)
Peyton Company's payroll for the year is $733,920. Of this amount, $474,300 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute:
Round your answers to the nearest cent.
a. Net FUTA tax | $fill in the blank 1 | |
b. Net SUTA tax | fill in the blank 2 | |
c. Total unemployment taxes | $fill in the blank 3 |
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