1-Compute and record the employee’s SUTA Contributions.(employees pay 0.06% on total gross pay).2-Compute and record the Kipley Company’s SUTA and FUTA contributions Final Part 4The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program.Complete the following step:1. Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay).Note: Round your final answers to nearest cent.KIPLEY COMPANY, INC.Employee Payroll RegisterFor Period Ending January 8, 20-EARNINGSDEDUCTIONSNET PAYNameGrossOASDIHIFITSITSUTACITSIMPLEGrp. Ins.Health Ins.Ck. No. AmountCarson,$700.00$43.40$10.15$60.00$21.49$21.00$20.00Wilson,w.897.0455.6213.0191.0027.5426.9150.00Utley,H.678.7542.089.8425.0020.8420.3640.00Fife, L877.1054.3812.7228.0026.9326.3150.00Smith,790.0048.9811.4661.0024.2523.7020.00Fay, G.539.1516.5533.437.823.0016.1740.00Robey.623.0838.639.0319.1318.6950.00G.Schork,T.773.0847.9311.2164.0023.7323.1960.00Hardy,666.111.0020.4519.9830.0041.309.66B.Kipley,30.70330M1,000.0062.0014.5013.0030.0080.00Totals$467.75$346.00 $231.61s226.31 $440.00$109.40s Taxable EarningsTaxable EarningsThe 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 thistax by filing an annual Form 940 with the Internal Revenue Service,In the Totals row, complete the following:1. 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. (Theemployer rate is 0.6%).2. 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.KIPLEY COMPANY, INC.Taxable EarningsPayroll TaxesEarningsOASDIHIFUTASUTATotals$467.75$109.39

State Unemployment Tax Act (SUTA): Employer has to pay the tax to the state government. The tax…

The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program. Complete the following step: 1. Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay). Note: Round your final answers to nearest cent. Name EARNINGS Gross OASDI HI FIT KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20- SIT DEDUCTIONS SUTA CIT NET PAY SIMPLE Grp. Ins. Health Ins. Ck. No. Amount

The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program. Complete the following step: 1. Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay). Note: Round your final answers to nearest cent. Name EARNINGS Gross OASDI HI FIT KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20- SIT DEDUCTIONS SUTA CIT NET PAY SIMPLE Grp. Ins. Health Ins. Ck. No. Amount

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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Question

1-Compute and record the employee’s SUTA Contributions.(employees pay 0.06% on total gross pay). 2-Compute and record the Kipley Company’s SUTA and FUTA contributions

Final Part 4
The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program.
Complete the following step:
1. Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay).
Note: Round your final answers to nearest cent.
KIPLEY COMPANY, INC.
Employee Payroll Register
For Period Ending January 8, 20-
EARNINGS
DEDUCTIONS
NET PAY
Name
Gross
OASDI
HI
FIT
SIT
SUTA
CIT
SIMPLE
Grp. Ins.
Health Ins.
Ck. No. Amount
Carson,
$700.00
$43.40
$10.15
$60.00
$21.49
$21.00
$20.00
Wilson,
w.
897.04
55.62
13.01
91.00
27.54
26.91
50.00
Utley,
H.
678.75
42.08
9.84
25.00
20.84
20.36
40.00
Fife, L
877.10
54.38
12.72
28.00
26.93
26.31
50.00
Smith,
790.00
48.98
11.46
61.00
24.25
23.70
20.00
Fay, G.
539.15
16.55
33.43
7.82
3.00
16.17
40.00
Robey.
623.08
38.63
9.03
19.13
18.69
50.00
G.
Schork,
T.
773.08
47.93
11.21
64.00
23.73
23.19
60.00
Hardy,
666.11
1.00
20.45
19.98
30.00
41.30
9.66
B.
Kipley,
30.70
330M
1,000.00
62.00
14.50
13.00
30.00
80.00
Totals
$467.75
$346.00 $231.61
s226.31 $440.00
$109.40
s

Taxable Earnings
Taxable Earnings
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:
1. 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%).
2. 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.
KIPLEY COMPANY, INC.
Taxable Earnings
Payroll Taxes
Earnings
OASDI
HI
FUTA
SUTA
Totals
$467.75
$109.39

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