Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This problem continues the computing and recording employee payroll for the Olney Company for the pay period ending January 8th, 20--. Tasks previously performed include

This problem continues the computing and recording employee payroll for the Olney Company for the pay period ending January 8th, 20--. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. These computations are shown in the Employee Payroll Register.

Requirements:

  1. Compute and record the employee's SUTA contributions.
  2. Compute and record the Olney Company's SUTA and FUTA contributions.

Complete the following step:

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

NoteRound your final answers to nearest cent.

ONLEY COMPANY, INC.
Employee Payroll Register
For Period Ending January 8, 20--
EARNINGSDEDUCTIONSNET PAY
NameGrossOASDIHIFITSITSUTACITSIMPLEGrp. Ins.Health Ins.Ck. No.Amount
Mangino, R.$740.00$45.88$10.73$64.00$22.72$$7.40$20.00
Flores1,058.8065.6515.35127.0032.5110.5950.00
Palmetto, C.685.3042.499.9426.0021.046.8540.00
Waters, R.1,045.3564.8115.1654.0032.0910.4560.00
Kroll, C.952.0059.0213.8080.0029.239.5220.00
Ruppert, C.837.5051.9312.1432.0025.718.3840.00
Scott, W.780.0048.3611.3118.0023.957.8050.00
Wickman, S.807.6950.0811.7169.0024.808.0850.00
Foley, L.1,233.1676.4617.8861.0037.8612.3330.00
Olney, M.1,500.0093.0021.7568.0046.0515.0080.00
Totals$597.68$139.77$599.00$295.96$$96.40$440.00----


Taxable Earnings

The Federal Unemployment Tax Act (or FUTA) 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 employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%).
  2. SUTA tax: Since Olney Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee’s earnings.

Note: Round each value to the nearest cent.

OLNEY COMPANY, INC.
Taxable Earnings
Payroll Taxes
EarningsOASDIHIFUTASUTA
Totals$$597.67$139.78$$

Step by Step Solution

3.41 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

To fis SUTA Goross n 740 0064 645 L08880 x 606 064 6... 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

Document Format ( 2 attachments)

PDF file Icon
635dc4b9c11fd_178711.pdf

180 KBs PDF File

Word file Icon
635dc4b9c11fd_178711.docx

120 KBs Word File

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

Horngrens Accounting

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

12th edition

9780134487151, 013448715X, 978-0134674681

More Books

Students also viewed these Accounting questions

Question

What is the purpose of using the high-low method?

Answered: 1 week ago

Question

express more than actually felt (amplification),

Answered: 1 week ago