Figure for 36 Calendar Year 2015 2016 2017 2018 Total Payroll Total Payroll Total Раyroll Total Тахable Таxable Тахable Payroll Тахable Payroll Рауroll Payroll Раугoll First Quarter Second Quarter . Third Quarter Fourth Quarter. $12,000 $12,000 $11,000 $11,000 $13,000 $13,000 S10,000 $10,000 11,750 11,750 11,500 11,400 12,750 12,700 9,300 9,300 12,500 12,250 12,750 12,400 12,200 12,000 9,350 9,350 13,000 12,500 12,500 12,200 14,000 13,750

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2005 to 2014, inclusive, the company’s total contributions to state unemployment compensation amounted to $14,695. For the calendar years 2015 to 2018, inclusive, the contribution rate for Karlson was 2.7%.

The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2019, the contributions rate for all employers in State H will be based on the following tax rate schedule:

The annual payroll for calculation purposes is the total wages payable during a 12-month period ending with the last day of the third quarter of any calendar year. The average annual payroll is the average of the last three annual payrolls. The SUTA tax rate for the year is computed using the information available (benefits received and taxes paid) as of September 30 of the preceding year.

The schedule below shows the total payroll and the taxable payroll for the calendar years 2015 to 2018

Unemployment benefits became payable to the company’s qualified unemployed workers on January 1, 2005. Between that time and September 30, 2018, total benefits amounting to $15,100.90 were charged against the employer’s account. Compute:
a. Contribution rate for 2019.....................................................................................
_______%
b. Rate for 2019 if $2,000 additional benefits had been charged by mistake to the account of Karlson Software Company by the State Unemployment
Compensation............................................................................... _______%.

Figure for 36
Transcribed Image Text:Figure for 36
Calendar Year
2015
2016
2017
2018
Total
Payroll
Total
Payroll
Total
Раyroll
Total
Тахable
Таxable
Тахable
Payroll
Тахable
Payroll
Рауroll
Payroll
Раугoll
First Quarter
Second Quarter .
Third Quarter
Fourth Quarter.
$12,000
$12,000
$11,000
$11,000 $13,000 $13,000 S10,000 $10,000
11,750
11,750
11,500
11,400
12,750
12,700
9,300
9,300
12,500
12,250
12,750
12,400
12,200
12,000
9,350
9,350
13,000
12,500
12,500
12,200
14,000
13,750
Transcribed Image Text:Calendar Year 2015 2016 2017 2018 Total Payroll Total Payroll Total Раyroll Total Тахable Таxable Тахable Payroll Тахable Payroll Рауroll Payroll Раугoll First Quarter Second Quarter . Third Quarter Fourth Quarter. $12,000 $12,000 $11,000 $11,000 $13,000 $13,000 S10,000 $10,000 11,750 11,750 11,500 11,400 12,750 12,700 9,300 9,300 12,500 12,250 12,750 12,400 12,200 12,000 9,350 9,350 13,000 12,500 12,500 12,200 14,000 13,750
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