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The employees of Pelter Company earn wages of $12,000 for the two weeks ending April 12. FIT taxes of $260 were withheld. The entire amount
The employees of Pelter Company earn wages of $12,000 for the two weeks ending April 12. FIT taxes of $260 were withheld. The entire amount of wages is subject to the FICA taxes, but only $9,800 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 2.9%. All employees are subject to state unemployment contributions of 0.5% on the April 12 taxable wages of $9,800, and the employees' contributions are to be deducted by the employer.
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