Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker) $1,700 per month A. Drugan (saleswoman) $15,000 per year G. Beiter (stock clerk) $180 per week S. Egan (deliveryman) $220 per week B. Lin (cleaning and maintenance, part-time) $160 per week Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 11. Round your intermediate calculations and final answers to the nearest cent. Use rounded answers in subsequent computations. If an amount is zero, enter "0". a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person. Taxable Earnings OASDI HI M. Grady $950.00 $fill in the blank 1 $fill in the blank 2 P. Monroe 950.00 fill in the blank 3 fill in the blank 4 V. Hoffman 392.31 fill in the blank 5 fill in the blank 6 A. Drugan 288.46 fill in the blank 7 fill in the blank 8 G. Beiter 180.00 fill in the blank 9 fill in the blank 10 S. Egan 220.00 fill in the blank 11 fill in the blank 12 B. Lin 160.00 fill in the blank 13 fill in the blank 14 b. Amount of the employer's FICA taxes for the weekly payroll. Taxable payroll $fill in the blank 15 OASDI $fill in the blank 16 HI $fill in the blank 17 c. Amount of state unemployment contributions for the weekly payroll. $fill in the blank 18 d. Amount of the net FUTA tax on the payroll. $fill in the blank 19 e. Total amount of the employer's payroll taxes for the weekly payroll. $fill in the blank 20
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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 net FUTA tax rate for employers.
Example 5-8
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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)
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year:
V. Hoffman (general office worker) $1,700 per month A. Drugan (saleswoman) $15,000 per year G. Beiter (stock clerk) $180 per week S. Egan (deliveryman) $220 per week B. Lin (cleaning and maintenance, part-time) $160 per week Grady and Monroe are each paid a weekly salary allowance of $950.
The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100.
Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 11. Round your intermediate calculations and final answers to the nearest cent. Use rounded answers in subsequent computations. If an amount is zero, enter "0".
a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person.
Taxable
EarningsOASDI HI M. Grady $950.00 $fill in the blank 1 $fill in the blank 2 P. Monroe 950.00 fill in the blank 3 fill in the blank 4 V. Hoffman 392.31 fill in the blank 5 fill in the blank 6 A. Drugan 288.46 fill in the blank 7 fill in the blank 8 G. Beiter 180.00 fill in the blank 9 fill in the blank 10 S. Egan 220.00 fill in the blank 11 fill in the blank 12 B. Lin 160.00 fill in the blank 13 fill in the blank 14 b. Amount of the employer's FICA taxes for the weekly payroll.
Taxable payroll $fill in the blank 15 OASDI $fill in the blank 16 HI $fill in the blank 17 c. Amount of state unemployment contributions for the weekly payroll.
$fill in the blank 18d. Amount of the net FUTA tax on the payroll.
$fill in the blank 19e. Total amount of the employer's payroll taxes for the weekly payroll.
$fill in the blank 20 -
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