Since the SUTA rates change at the end of each year, the available 2023 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 1. Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6% SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 x 0.006 SUTA $255,700 x 0.056 = $ 1,293.60 = Total taxes 14,319.20 $15,612.80 2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8% 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) Qwan Company's payroll for the year is $749,080. Of this amount, $464,150 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Qwan Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax c. Total unemployment taxes 5t $
Since the SUTA rates change at the end of each year, the available 2023 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 1. Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6% SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 x 0.006 SUTA $255,700 x 0.056 = $ 1,293.60 = Total taxes 14,319.20 $15,612.80 2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8% 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) Qwan Company's payroll for the year is $749,080. Of this amount, $464,150 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Qwan Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax c. Total unemployment taxes 5t $
Chapter5: Unemployment Compensation Taxes
Section: Chapter Questions
Problem 11PB
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Transcribed Image Text:Since the SUTA rates change at the end of each year, the available 2023 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
1. Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6% SUTA tax rate. The
company would pay unemployment taxes of:
FUTA $215,600 x 0.006
SUTA $255,700 x 0.056
= $ 1,293.60
=
Total taxes
14,319.20
$15,612.80
2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8% 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)
Qwan Company's payroll for the year is $749,080. Of this amount, $464,150 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Qwan
Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute:
Round your answers to the nearest cent.
a. Net FUTA tax
b. Net SUTA tax
c. Total unemployment taxes
5t
$
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