Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Example 5-7

Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $12,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are:

FUTA tax $130,000 0.6% = $780
SUTA tax $210,000 0.9% = 1,890
Total unemployment taxes $2,670

During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,400. Compute:

Round your answers to the nearest cent.

a. Net FUTA tax $
b. Net SUTA tax $
c. Total unemployment taxes $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Financial Instruments

Authors: Cormac Butler

1st Edition

0470699809, 978-0470699805

More Books

Students also viewed these Accounting questions

Question

Learn about HRM development in Poland in recent years.

Answered: 1 week ago