Answered: Part 2: Determine your FUTA tax before…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Complete Part 2 of Form 940 based on the following information: (Round your answers to two decimal places, if necessary.)

Total payroll for the year	$913,590
Payroll to employees in excess of $7,000	$421,930
Employer contributions into employees' 401(k) plans	$23,710

Part 2:	Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank.
3	Total payments to all employees		3 fill in the blank 1
4	Payments exempt from FUTA tax	4 fill in the blank 2
	Select:
5	Total of payments made to each employee in excess of $7,000	5 fill in the blank 4
6	Subtotal (line 4 + line 5 = line 6)	6 fill in the blank 5
7	Total taxable FUTA wages (line 3 – line 6 = line 7)	7 fill in the blank 6
8	FUTA tax before adjustments (line 7 x .006 = line 8)	8 fill in the blank 7

b. If the employer is located in California, which has a credit reduction of 2.1%, what would be the amount of the credit reduction?
$fill in the blank 8

c. Complete Part 5 of Form 940 for the California employer given the breakdown of FUTA taxable wages for the year to be:

1st quarter	$237,000
2nd quarter	$168,000
3rd quarter	$54,000
4th quarter	$8,950
Yearly Total	$467,950

The employer paid their SUTA on-time. Round your answers to two decimal places, if necessary.

Part 5:	Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6.
16	Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank.
	16a 1st quarter (January 1 – March 31)	16a fill in the blank 9
	16b 2nd quarter (April 1 – June 30)	16b fill in the blank 10
	16c 3rd quarter (July 1 – September 30)	16c fill in the blank 11
	16d 4th quarter (October 1 – December 31)	16d fill in the blank 12
17	Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17)	17 fill in the blank 13 Total must equal line 12.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions