Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA.Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.Example 5-81. The Igbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA taxrate. The company would pay unemployment taxes of:FUTA $215,600 x 0.006$ 1,293.60SUTA $255,700 x 0.05614,319.20%3DTotal taxes$15,612.802. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on thefirst $12,000 of each employee's earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to thisweek's pay. The unemployment taxes that the company must pay for this week's pay would be $48.FUTA tax (both over $7,000) = $0.00SUTA tax ($1,000 x 0.048) = $48.00($500 of each employee's pay is under the state taxable limit of $12,000)Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute:Round your answers to the nearest cent.a. Net FUTA taxb. Net SUTA tax

When a company records the compensation of its employees, such type of accounting is known as payroll accounting. Costs entered in the payroll account incorporate salaries of employees, payroll taxes and gross wages.Net FUTA tax= $67,900 × 0.6%= $407.4 Net SUTA tax= $83,900 × 3.7%= $3,104.3Answer: Net FUTA tax= $407.4 Net SUTA tax= $3,104.3

Business

Accounting

Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax

Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax

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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