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 = $ 1,293.60 SUTA $255,700 x 0.056 = 14,319.20 Total taxes $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 x 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
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 = $ 1,293.60 SUTA $255,700 x 0.056 = 14,319.20 Total taxes $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 x 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
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 = $ 1,293.60
SUTA $255,700 x 0.056 = 14,319.20
Total taxes
$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 x 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
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