Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following unemployment tax rate schedule is in effect for the calendar year 2021 in State A, which uses the reserve-ratio formula in determining employer
The following unemployment tax rate schedule is in effect for the calendar year 2021 in State A, which uses the reserve-ratio formula in determining employer contributions: Reserve Ratio Contribution Rate 0.0% or more, but less than 1.0% 6.7% 1.0% or more, but less than 1.2% 6.4% 1.2% or more, but less than 1.4% 6.1% 1.4% or more, but less than 1.6% 5.8% 1.6% or more, but less than 1.8% 5.5% 1.8% or more, but less than 2.0% 5.2% 2.0% or more, but less than 2.2% 4.9% 2.2% or more, but less than 2.4% 4.6% 2.4% or more, but less than 2.6% 4.3% 2.6% or more, but less than 2.8% 4.0% 2.8% or more, but less than 3.0% 3.7% 3.0% or more, but less than 3.2% 3.4% 3.2% or more 3.1% Hyram Company, which is located in State A, had an average annual payroll of $840,000 for the three 12-month periods ending on June 30, 2020 (the computation date for the tax year 2021). As of June 30, 2020, the total contributions that had been made to Hyram Company's reserve account, in excess of the benefits charged, amounted to $17,220. Compute the following: a. Hyram Company's reserve ratio for 2020. Round your answer to two decimal places. fill in the blank 1 % b. 2021 contribution rate for the company. Round your answer to one decimal place. fill in the blank 2 % c. Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions. $fill in the blank 3 d. Tax savings realized by the company, taking into consideration the voluntary contribution made in (c) if the taxable payroll in 2021 is $990,000. $fill in the blank 4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started