The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program.

Complete the following step:

1. Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay).

Note : Round your final answers to nearest cent.

KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS	NET PAY
Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Carson, F.	$700.00	$43.40	$10.15	$48.00	$21.49	$fill in the blank	$21.00	$20.00
Wilson, W.	897.04	55.62	13.01	68.00	27.54	fill in the blank	26.91	50.00
Utley, H.	678.75	42.08	9.84	14.00	20.84	fill in the blank	20.36	40.00
Fife, L.	877.10	54.38	12.72	33.00	26.93	fill in the blank	26.31	50.00
Smith, L.	790.00	48.98	11.46	59.00	24.25	fill in the blank	23.70	20.00
Fay, G.	539.15	33.43	7.82	0.00	16.55	fill in the blank	16.17	40.00
Robey, G.	623.08	38.63	9.03	7.00	19.13	fill in the blank	18.69	50.00
Schork, T.	773.08	47.93	11.21	51.00	23.73	fill in the blank	23.19	60.00
Hardy, B.	666.11	41.30	9.66	14.00	20.45	fill in the blank	19.98	30.00
Kipley, C.	1,000.00	62.00	14.50	43.00	30.70	fill in the blank	30.00	80.00
Totals	$467.75	$109.40	$337.00	$231.61	$fill in the blank	$226.31	$440.00			----

X

Taxable Earnings

Question Content Area

Taxable Earnings

The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service.

In the Totals row, complete the following:

1. Net FUTA tax. Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employees gross earnings is subject to the FUTA tax. (The employer rate is 0.6%.)
2. SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employees earnings.

Note : Round your final answers to nearest cent.

KIPLEY COMPANY, INC. Taxable Earnings Payroll Taxes
	Earnings	OASDI	HI	FUTA	SUTA
Totals	$fill in the blank	$467.75	$109.40	$fill in the blank	$fill in the blank