The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service.In the Totals row, complete the following:Net FUTA tax. Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%.)SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee’s earnings.Note : Round your final answers to nearest cent. I need help in calculating the FUTA and the SUTA in step by step solutions.KIPLEY COMPANY, INC.Taxable EarningsPayroll Taxes EarningsOASDIHIFUTASUTA Totals$fill in the blank 5e50fe031fd1002_1$467.75$109.40$fill in the blank 5e50fe031fd1002_2$fill in the blank 5e50fe031fd1002_3 Feedback Area

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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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The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service.

In the Totals row, complete the following:

Net FUTA tax. Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%.)
SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee’s earnings.

Note : Round your final answers to nearest cent.

I need help in calculating the FUTA and the SUTA in step by step solutions.

	Earnings	OASDI	HI	FUTA	SUTA
KIPLEY COMPANY, INC. Taxable Earnings Payroll Taxes

Totals	$fill in the blank 5e50fe031fd1002_1	$467.75	$109.40	$fill in the blank 5e50fe031fd1002_2	$fill in the blank 5e50fe031fd1002_3

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