Unemployment Compensation Taxes

1.Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Faruga Company had FUTA taxable payrolls for the four quarters of $38,400; $29,600; $16,500; and $8,900, respectively. What was the amount of Faruga's first required deposit of FUTA taxes?

2.Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

In the first quarter of the year, Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer. How much would the employer's FUTA tax be for the first quarter on Gibson?

3.Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Hunter Company had a FUTA taxable payroll of $192,700 for the year. Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans, determine Hunter's FUTA tax liability for the year.

4.In Part 5 of Form 940, Peterson Company reported FUTA tax liabilities as follows:

First quarter:$397.50Second quarter:$209.10Third quarter:$274.50Fourth quarter:$262.20

List the amounts and the dates of each required FUTA tax deposit:

5.Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Ted Carman worked for Rivertide Country Club and earned $28,500 during the year. He also worked part time for Harrison Furniture Company and earned $12,400 during the year. The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000, and the rate for Harrison Furniture Company is 5.1% on the first $8,000. Calculate the FUTA and SUTA taxes paid by the employers on Carman's earnings.

6.Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. The amount of FUTA tax for the year is.....

7.Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Queno Company had FUTA taxable wages of $510,900 during the year. Determine its:(Round your answers to two decimal places.)

a.gross FUTA tax$.b.FUTA tax credits (assuming no penalties)$.c.net FUTA tax

8.a.Complete Part 2 of Form 940 based on the following information:(Round your answers to two decimal places, if necessary.)

Total payroll for the year$913,590Payroll to employees in excess of $7,000$421,930Employer contributions into employees' 401(k) plans$23,710

b.If the employer is located in California, which has a credit reduction of 2.1%, what would be the amount of the credit reduction?

c.Complete Part 5 of Form 940 for the California employer given the breakdown of FUTA taxable wages for the year to be:

1st quarter$237,0002nd quarter$168,0003rd quarter$54,0004th quarter$8,950Yearly Total$467,950

The employer paid their SUTA on-time.Round your answers to two decimal places, if necessary.

16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank.

16a 1st quarter(January 1 - March 31 $1,422

16b 2nd quarter(April 1 - June 30 $1,008

16c 3rd quarter(July 1 - September 30) $324

16d 4th quarter(October 1 - December 31)

17Total tax liability for the year(lines 16a + 16b + 16c + 16d = line 17)