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 $123,400. Compute: Round your answers to the nearest cent. a. Net FUTA tax $ b. Net SUTA tax $ c. Total unemployment taxes $ Feedback a. FUTA Taxable payroll times net FUTA rate? b. SUTA Taxable payroll times net SUTA rate? c. Total unemployment taxes?
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 $123,400. Compute: Round your answers to the nearest cent. a. Net FUTA tax $ b. Net SUTA tax $ c. Total unemployment taxes $ Feedback a. FUTA Taxable payroll times net FUTA rate? b. SUTA Taxable payroll times net SUTA rate? c. Total unemployment taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $123,400. Compute:
Round your answers to the nearest cent.
| a. Net FUTA tax | $ |
| b. Net SUTA tax | $ |
| c. Total unemployment taxes | $ |
a. FUTA Taxable payroll times net FUTA rate?
b. SUTA Taxable payroll times net SUTA rate?
c. Total unemployment taxes?
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