Jordan Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $86,700 and for SUTA, $171,000. Compute the following; round your answers to the nearest cent. a. SUTA tax that Jordan Company would pay to the state of Alaska $fill in the blank 1 b. Net FUTA tax $fill in the blank 2 c. Amount of employees' unemployment tax (use the employee's tax rate shown in Figure 5.1) $fill in the blank 3
Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA.
Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.
Example 5-8
-
The Iqbal 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 tax rate. The company would pay
unemployment taxes of:FUTA $215,600 × 0.006 = $1,293.60 SUTA $255,700 × 0.056 = 14,319.20 Total taxes $15,612.80 -
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 the first $12,000 of each employee’s earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week’s pay. The unemployment taxes that the company must pay for this week’s pay would be $48.
FUTA tax (both over $7,000) = $0.00
SUTA tax ($1,000 × 0.048) = $48.00
($500 of each employee’s pay is under the state taxable limit of $12,000)
Jordan Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $86,700 and for SUTA, $171,000. Compute the following; round your answers to the nearest cent.
a. SUTA tax that Jordan Company would pay to the state of Alaska
$fill in the blank 1
b. Net FUTA tax
$fill in the blank 2
c. Amount of employees' unemployment tax (use the employee's tax rate shown in Figure 5.1)
$fill in the blank 3
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
