Please answer questions 1 and 2 correctly and completely. Please provide the right answers to questions PSb 5-5 Calculate FUTA and SUTA TaxFor each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer:NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.1: An employer in Delaware City, Delaware, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $6,100 and $8,800. During thecurrent pay period, these employees earn $1,450 and $2,000, respectively. The applicable SUTA tax rate is 2.1%, and the Delaware SUTA threshold is $16,500.FUTA tax = $SUTA tax = $2: An employer in Bridgeport, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200.During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTAthreshold is $15,000.FUTA tax = $SUTA tax = $

Answered: Please answer questions 1 and 2…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer questions 1 and 2 correctly and completely. Please provide the right answers to questions

PSb 5-5 Calculate FUTA and SUTA Tax
For each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer:
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1: An employer in Delaware City, Delaware, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $6,100 and $8,800. During the
current pay period, these employees earn $1,450 and $2,000, respectively. The applicable SUTA tax rate is 2.1%, and the Delaware SUTA threshold is $16,500.
FUTA tax = $
SUTA tax = $
2: An employer in Bridgeport, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200.
During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTA
threshold is $15,000.
FUTA tax = $
SUTA tax = $

Expert Solution

Step 1

FUTA Tax

Any business with employees is subject to a payroll tax under the Federal Unemployment Tax Act (FUTA). The money it brings in is distributed to state unemployment insurance Programmes, which then pay out unemployment compensation to unemployed persons.

SUTA Tax

States compel companies to pay a particular kind of payroll tax known as the State Unemployment Tax Act (SUTA). SUTA was created to give displaced workers unemployment benefits. States spend money to provide unemployed workers with unemployment insurance payouts.