In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Ohio. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Ohio. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $19420; $2950 were paid in Nebraska and the remainder in Ohio. Compute the following: round your answers to the nearest cent.
In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Ohio. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Ohio. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $19420; $2950 were paid in Nebraska and the remainder in Ohio. Compute the following: round your answers to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In April of the current year, Freeman
Steel Company transferred Herb Porter
from its factory in Nebraska to its plant
in Ohio. The company's SUTA tax rates
based on its experience ratings are
3.2% in Nebraska and 3.8% in Ohio.
Both states base the tax on the first
$9,000 of each employee's earnings.
This year, Freeman Steel Company
paid Herb Porter wages of $19420;
$2950 were paid in Nebraska and the
remainder in Ohio. Compute the
following: round your answers to the
nearest cent.
a. Amount of SUTA tax the company
must pay to Nebraska on Porter's
wages
$
b. Amount of SUTA tax the company
must pay to Ohio on Porter's wages
$
c. Amount of the net FUTA tax on
Porter's wages (Ohio is a credit
reduction state-0.9%.)
$
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