Employee SUTA ContributionsSome states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different thanan employer's... taxable wages (those under the cap) times the state rate for employees.Let's investigate an individual that lives in New Jersey whose monthly wages equal $2,470 and whose earnings to date have not exceeded the New Jersey cap of $DescriptionCalculation1. Looking at the chart, in the Employee column, it provides the employee withholding rate(0.705% in New Jersey) and the withholding taxable wage cap.2. Taxable wages3. New Jersey employee rate4. Employee SUTA tax, rounded to the nearest cent$2,4700.705%$17.41Making It WorkUsing the amalgamated State SUTA chart, complete the following.Note: Round all amounts to the nearest cent.Akia Hayden lives in Alaska and has wages of $725.33 per week and has not exceeded the SUTA cap of $Employee: Hayden, AkiaTaxable wagesSUTA tax rateTotal unemployment taxState:Alaska%x.

The objective of the question is to calculate the State Unemployment Tax Act (SUTA) contributions…

Answered: Employee SUTA Contributions Some states…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tax Exemptions Exemptions allow people to take money out of their paychecks for specific uses before the income is taxed. These deductions are generally handled through the employer. Examples include: Flexible Spending Accounts. A few thousand dollars a year can be held back from your paycheck to pay for essential items such public transportation to and from work, and medical expenses. Individual Retirement Account Contributions. Under this exemption, you can put aside a certain amount of money for retirement without paying taxes on it. For example, the 2014 limit was $5, 500. Example: A single person earns $40,000 a year. Each month their employer takes out $200 and puts it into a retirement account a year). The employer also takes out $50 a month for transportation ($600 a year). This reduces the amount of income counted towards taxes by $3, 000 The employee can still spend the $50 on bus or train tickets for their commute, but the earnings do not count as income for tax purposes.…
For 2018, the Social Security portion of the FICA tax is imposed at a rate of (not including any additional tax for high-income earners): a.6.2 percent for the employee and 7.65 percent for the employer. b.6.2 percent for only the employer. c.6.2 percent for the employee and 6.2 percent for the employer. d.6.2 percent for only the employee. e.None of these choices are correct.
The sole purpose of Social Security taxes is to provide retirement benefits to employees. True False The Social Security wage base for 2019 is $132,900. True False Taxable earnings for Social Security tax are always the same as taxable earnings for federal income tax withholding. True False Collectively, Social Security tax and Medicare tax are referred to as FICA taxes. True False The income threshold for Medicare tax indicates the income level above which no Medicare taxes are levied. True False Employees are required to contribute toward the purchase of disability insurance in all 50 states. True False The contribution limit for a SIMPLE IRA is lower than that for a 401(k) or 403(b). True False ERISA is a set of regulations that dictate the manner in which a cafeteria plan may be administered. True False Flexible spending accounts contain a use it or lose it feature that, although…
FIGURE 13-3 40. An employee earns a gross wage represented as W. The employee's payroll deductions are shown in Figure 13-4. What is the employee's net wage? Type of Deduction Amount of Deduction Federal Income Tax 0.22W Social Security 0.076W Health and Accident Insurance 0.065W Retirement 0.05W Miscellaneous 0.042W ⒸCengage Leaming 2013
These provide an employee with financial security upon ceasing employment. A wide variety of these exist, and withholding from gross pay for these plans is a voluntary deduction. The withholding of a portion of an employee's earnings, in compliance with a court order or other legal proceeding. Limited to the lesser of 25% of disposable earnings or the amount of disposable earnings that exceed 30 times the federal minimum wage. A flexible spending account that is designated for a specific purpose. It is a type of cafeteria plan.
In a defined benefits retirement plan, the employer bears the investment risks in funding a future retirement income benefit. ____ 12. The cost of replacing an engine in a truck is an example of ordinary maintenance that should be expensed instead of capitalized. ____ 13. For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits. ____ 14. Medicare taxes are paid by both the employee and the employer. ____ 15. Costs associated with normal research and development activities should be treated as intangible assets. True and false questions....
Which of the following does not describe a purpose of the employee's earnings records? a. They are part of the payroll package required to be sent to the IRS on an annual basis. b. They are used to prepare internal management analyses. c. They are used to determine where cumulative wages are in relationship to wage bases (caps ) for various taxes, such as OASDI, FUTA, and SUTA. d. They are used to aid in completion of year - end informational returns, such as W -2s.
Please match the voluntary deductions listed with the correct definition.
H
Reimbursement of costs covered by employees on behalf of the employer such as travel expenses and meal allowances Multiple Choice Must be reported on a T4 to the Caneda Revenue Agency Increase the employee's taxable income Are reported as part of gross wages Typically are paid through Accounts Payoble and do not impact deductions Must be below $300 per person per calendar year
Use (a) the percentage method and (b) the wage - bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. As we go to press, the federal income tax rates for 2024 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2023 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later with Standard Withholding and 2023 FICA rates have been used.Amount to Be withheld
Which of the following statements is currently true:

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