In September Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid each employee. An analysis of the company's payroll for the year shows total wages paid of $188,480. The salaries of the president and the vice president of the company were $18,100 and $15,100, respectively, for the four-month period, but there were no other employees who received wages in excess of $7,000 for the four months. Included in the total wages were $970 paid to a director who only attended director meetings during the year, $6,130 paid to the factory superintendent, and $1,810 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state. In addition to the total wages of $188,480, a payment of $2,460 was made to Andersen Accounting Company for an audit it performed on the company's books in December. Compute the following; round your answers to the nearest cent. a. Net FUTA tax $ b. SUTA tax $ Feedback a. To calculate FUTA Taxable wages; Take total wages less Director's salary, less wages in excess of $7,000 per employee and less Pretax cafeteria plan contributions; multiply resulting FUTA taxable wages by net FUTA rate.b. To calculate SUTA Taxable wages; Take total wages less Director's salary, less wages in excess of $7,000 per employee and less Pretax cafeteria plan contributions; multiply resulting SUTA taxable wages by SUTA rate.
In September Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state
An analysis of the company's payroll for the year shows total wages paid of $188,480. The salaries of the president and the vice president of the company were $18,100 and $15,100, respectively, for the four-month period, but there were no other employees who received wages in excess of $7,000 for the four months. Included in the total wages were $970 paid to a director who only attended director meetings during the year, $6,130 paid to the factory superintendent, and $1,810 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state.
In addition to the total wages of $188,480, a payment of $2,460 was made to Andersen Accounting Company for an audit it performed on the company's books in December. Compute the following; round your answers to the nearest cent.
| a. Net FUTA tax | $ |
| b. SUTA tax | $ |
a. To calculate FUTA Taxable wages; Take total wages less Director's salary, less wages in excess of $7,000 per employee and less Pretax cafeteria plan contributions; multiply resulting FUTA taxable wages by net FUTA rate.
b. To calculate SUTA Taxable wages; Take total wages less Director's salary, less wages in excess of $7,000 per employee and less Pretax cafeteria plan contributions; multiply resulting SUTA taxable wages by SUTA rate.
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