Universal Exporting has three warehouse employees: John Abner earns $422 per week, Anne Clark earns $510 per week, and Todd Corbin earns $695 per week. The company's SUTA tax rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings. a. How much SUTA and FUTA tax does the company owe on these employees for the first quarter of the year?
Universal Exporting has three warehouse employees: John Abner earns $422 per week, Anne Clark earns $510 per week, and Todd Corbin earns $695 per week. The company's SUTA tax rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings. a. How much SUTA and FUTA tax does the company owe on these employees for the first quarter of the year?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter13: Accounting For Payroll And Payroll Taxes
Section13.2: Recording Employer Payroll Taxes
Problem 2AYU
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![b. How much SUTA and FUTA tax did Universal pay in the second quarter of the year?
Amount under wage limit
subject to FUTA and SUTA
Abner
Clark
Corbin
Total =
SUTA tax, second quarter =
FUTA tax, second quarter =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb372ec47-ee36-4baa-b365-e8b0e97a6c99%2F16064060-fd35-4ecc-8b52-9829d88766be%2F0wcjcs_processed.png&w=3840&q=75)
Transcribed Image Text:b. How much SUTA and FUTA tax did Universal pay in the second quarter of the year?
Amount under wage limit
subject to FUTA and SUTA
Abner
Clark
Corbin
Total =
SUTA tax, second quarter =
FUTA tax, second quarter =
![Universal Exporting has three warehouse employees: John Abner earns $422 per week, Anne Clark
earns $510 per week, and Todd Corbin earns $695 per week. The company's SUTA tax rate is 5.4%,
and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the
first $7,000 of each employee's earnings.
a. How much SUTA and FUTA tax does the company owe on these employees for the
first quarter of the year?
Wage limit for FUTA and SUTA taxes =
FUTA rate
SUTA rate =
FUTA =
Gross per
Gross for
Wages subject to FUTA and SUTA
week
first quarter
(not to exceed wage limit)
Abner
Clark
Corbin
Total =
SUTA tax, first quarter =
FUTA tax, first quarter](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb372ec47-ee36-4baa-b365-e8b0e97a6c99%2F16064060-fd35-4ecc-8b52-9829d88766be%2Fp4r2lr_processed.png&w=3840&q=75)
Transcribed Image Text:Universal Exporting has three warehouse employees: John Abner earns $422 per week, Anne Clark
earns $510 per week, and Todd Corbin earns $695 per week. The company's SUTA tax rate is 5.4%,
and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the
first $7,000 of each employee's earnings.
a. How much SUTA and FUTA tax does the company owe on these employees for the
first quarter of the year?
Wage limit for FUTA and SUTA taxes =
FUTA rate
SUTA rate =
FUTA =
Gross per
Gross for
Wages subject to FUTA and SUTA
week
first quarter
(not to exceed wage limit)
Abner
Clark
Corbin
Total =
SUTA tax, first quarter =
FUTA tax, first quarter
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