Calculate the Company G’s FUTA and SUTA tax for the year 2019.

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Answer 1

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Outline three (3) ways that conflicts of interest should be managed by tax agents. In relation to the two (2) conflict examples that you identified in question 1, explain how each one of these conflicts should be managed.

Answer 2

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 3

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 4

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 5

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

Answer 6

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

Answer 7

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Answer 8

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 5 - Prob. 1SSQ Ch. 5 - Prob. 2SSQ Ch. 5 - Prob. 3SSQ Ch. 5 - _____ 1. Reciprocal arrangements A. Extra state...Ch. 5 - What two alternative tests are applied to a...Ch. 5 - What condition would make a household employer a...Ch. 5 - Prob. 3QR Ch. 5 - Prob. 4QR Ch. 5 - Prob. 5QR Ch. 5 - Prob. 6QR

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Explanation of Solution

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