Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Since the SUTA rates changes are made ot the end of each year, the avallable 2022 rates were used for FUTA and SUTA. Note: For

image text in transcribed
image text in transcribed
Since the SUTA rates changes are made ot the end of each year, the avallable 2022 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 510 The fottowing unemployment tax rate schedule is in effect for the calendar year 2023 in State A, which uses the reserve-ratio formula in determining employer contributions: Hyram Company, which is located in State A, had an averoge annual payroll of $850,000 for the three 12 -month periods ending on June 30,2022 (the computation dote for the tax year 2023). As of June 30, 2022, the total contributions that had been made to Hyram Companys reserve account, in excess of the benefits charged amounted to $17,440, Compute the following: a. Hyram Company's reserve ratio for 2022 . Round your answer to two decimal places. % b. 2023 contribution rate for the company. Round your answer to one decimal place. \%s. c. Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions. $ d. Tax savings realized by the company, taking into consideration the voluntary contribution made in (c) if the taxable poyroll in 2023 is 5980,000 . 1 Since the SUTA rates changes are made ot the end of each year, the avallable 2022 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 510 The fottowing unemployment tax rate schedule is in effect for the calendar year 2023 in State A, which uses the reserve-ratio formula in determining employer contributions: Hyram Company, which is located in State A, had an averoge annual payroll of $850,000 for the three 12 -month periods ending on June 30,2022 (the computation dote for the tax year 2023). As of June 30, 2022, the total contributions that had been made to Hyram Companys reserve account, in excess of the benefits charged amounted to $17,440, Compute the following: a. Hyram Company's reserve ratio for 2022 . Round your answer to two decimal places. % b. 2023 contribution rate for the company. Round your answer to one decimal place. \%s. c. Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions. $ d. Tax savings realized by the company, taking into consideration the voluntary contribution made in (c) if the taxable poyroll in 2023 is 5980,000 . 1

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_2

Step: 3

blur-text-image_3

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 Ethics A Practical Approach

Authors: Howard J Levine

1st Edition

0692112898, 9780692112892

More Books

Students also viewed these Accounting questions

Question

Under what conditions are two qualitative variables independent?

Answered: 1 week ago

Question

What is job rotation ?

Answered: 1 week ago

Question

Why are employees considering union representation?

Answered: 1 week ago

Question

What is the total annual turnover rate?

Answered: 1 week ago