Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are: FUTA tax – $130,000 × 0.6% = $780 SUTA tax – $210,000 × 0.9% = 1,890 Total unemployment taxes $2,670 During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,600. Compute:
Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are: FUTA tax – $130,000 × 0.6% = $780 SUTA tax – $210,000 × 0.9% = 1,890 Total unemployment taxes $2,670 During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,600. Compute:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.
Example 5-7
Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total
| FUTA tax – $130,000 × 0.6% | = | $780 |
| SUTA tax – $210,000 × 0.9% | = | 1,890 |
| Total unemployment taxes | $2,670 |
During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,600. Compute:
Round your answers to the nearest cent.
| a. Net FUTA tax | $fill in the blank 1 |
| b. Net SUTA tax | fill in the blank 2 |
| c. Total unemployment taxes | $fill in the blank 3 |
16. PR.05.02A.EXCEL.ALGO
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