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UTA tax = $ employer in Durham, North Carolina, employs three individuals, whose taxable ea uring the current pay period, these employees earn $980, $1,600, and $1,150, re reshold is $26,000. UTA tax = $ UTA tax = $

UTA tax = $ employer in Durham, North Carolina, employs three individuals, whose taxable ea uring the current pay period, these employees earn $980, $1,600, and $1,150, re reshold is $26,000. UTA tax = $ UTA tax = $

FINANCIAL ACCOUNTING
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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3: An employer in the U.S. Virgin Islands, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $1,420 and $32,100. During the current pay period, these employees earn $3,350 and $1,700, respectively. The applicable SUTA tax rate is 4%, and the U.S. Virgin Islands SUTA threshold is $32,500. FUTA tax = $ SUTA tax = $ 4: An employer in Durham, North Carolina, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,000, $22,600, and $35,800. During the current pay period, these employees earn $980, $1,600, and $1,150, respectively. The applicable SUTA tax rate is 1.2%, and the North Carolina SUTA threshold is $26.000, FUTA tax = $ SUTA tax = $ FUTA rate = 0.6% on first 7000 of an Employee's salary SUTA rate = 2.1%. Threshold = $ 16500 Answer 1) FUTA Tax = $ 1450 * 0.6% = $ 8.7 Note: FUTA is not applicable on the other individual as its annual income is more than $ 7000. SUTA Tax = ( $ 1450 + $ 2000 ) * 2.1% = $ 72.45 Note: Since , the annual income ($ 6100 + $ 8800 = $ 14900 ) is less than the threshold , the SUTA tax is applicable on both the individuals.
Transcribed Image Text:3: An employer in the U.S. Virgin Islands, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $1,420 and $32,100. During the current pay period, these employees earn $3,350 and $1,700, respectively. The applicable SUTA tax rate is 4%, and the U.S. Virgin Islands SUTA threshold is $32,500. FUTA tax = $ SUTA tax = $ 4: An employer in Durham, North Carolina, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,000, $22,600, and $35,800. During the current pay period, these employees earn $980, $1,600, and $1,150, respectively. The applicable SUTA tax rate is 1.2%, and the North Carolina SUTA threshold is $26.000, FUTA tax = $ SUTA tax = $ FUTA rate = 0.6% on first 7000 of an Employee's salary SUTA rate = 2.1%. Threshold = $ 16500 Answer 1) FUTA Tax = $ 1450 * 0.6% = $ 8.7 Note: FUTA is not applicable on the other individual as its annual income is more than $ 7000. SUTA Tax = ( $ 1450 + $ 2000 ) * 2.1% = $ 72.45 Note: Since , the annual income ($ 6100 + $ 8800 = $ 14900 ) is less than the threshold , the SUTA tax is applicable on both the individuals.
PSb 5-5 Calculate FUTA and SUTA Tax For each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer: NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: An employer in Delaware City, Delaware, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $6,100 and $8,800. During the current pay period, these employees earn $1,450 and $2,000, respectively. The applicable SUTA tax rate is 2.1%, and the Delaware SUTA threshold is $16,500. FUTA tax = $ 8.70 SUTA tax = $ 72.45 2: An employer in Bridgeport, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200. During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTA threshold is $15,000. FUTA tax = $ SUTA tax = $
Transcribed Image Text:PSb 5-5 Calculate FUTA and SUTA Tax For each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer: NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: An employer in Delaware City, Delaware, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $6,100 and $8,800. During the current pay period, these employees earn $1,450 and $2,000, respectively. The applicable SUTA tax rate is 2.1%, and the Delaware SUTA threshold is $16,500. FUTA tax = $ 8.70 SUTA tax = $ 72.45 2: An employer in Bridgeport, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200. During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTA threshold is $15,000. FUTA tax = $ SUTA tax = $
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