PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
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Chapter 5, Problem 4PB
a.
To determine
Ascertain the SUTA taxes amount paid to State NM.
b.
To determine
Ascertain the SUTA taxes amount paid to State C.
c.
To determine
Ascertain the SUTA taxes amount paid to State U.
d.
To determine
Ascertain the FUTA taxes amount paid to federal government.
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The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State
Unemployment Taxes (SUTA) tax rate is 5.4%. Both taxes are applied to the first $7,000 of an
employee's pay. Assume that an employee earned total wages of $3,060 in the current
period and had cumulative pay for prior periods of $6,120. What is the amount of
unemployment taxes the employer must pay on this employee's wages for the current
period?
Multiple Choice
$420.00.
$367.20.
$52.80.
O $183.60.
$0.00.
According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes.
Question Content Area
Required:
a. Compute the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.$ fill in the blank bdfee804ffc2f82_1
Question Content Area
b. Journalize the entry for the employer's payroll tax expense. If an amount box does not require an entry, leave it blank.
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its
employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee.
FICA - Social Security
FICA Base
FICA - Medicare
Federal Unemployment Tax (FUTA)
State Unemployment Tax (SUTA)
Unemployment limit
Situation
FUTA
SUTA
FICA-Social Security
FICA-Medicare
a.
b.
C.
Gross Pay through
August 31
$6,400
2,000
131,400
6.2%
$137,700
1.45%
0.6%
5.4%
$7,000
Gross Pay for
September
Required: Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September
under each of three separate situations (a), (b), and (c). Note: If no tax is due, no formula is required.
'Tax
Situation a
Situation b
Situation c
$800
2,100
8,000
Chapter 5 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Ch. 5 - Prob. 1SSQCh. 5 - Prob. 2SSQCh. 5 - Prob. 3SSQCh. 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. 3QRCh. 5 - Prob. 4QRCh. 5 - Prob. 5QRCh. 5 - Prob. 6QR
Ch. 5 - Prob. 7QRCh. 5 - An employer, because of a favorable experience...Ch. 5 - Prob. 9QRCh. 5 - Prob. 10QRCh. 5 - Prob. 11QRCh. 5 - Prob. 12QRCh. 5 - Prob. 13QRCh. 5 - Prob. 14QRCh. 5 - Prob. 15QRCh. 5 - Prob. 16QRCh. 5 - Prob. 17QRCh. 5 - Prob. 18QRCh. 5 - Prob. 19QRCh. 5 - Prob. 20QRCh. 5 - Can the owner of a small business receive...Ch. 5 - Prob. 2QDCh. 5 - Prob. 4QDCh. 5 - Prob. 1PACh. 5 - Peyton Companys payroll for the year is 737,910....Ch. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 8PACh. 5 - Prob. 9PACh. 5 - Prob. 10PACh. 5 - Prob. 11PACh. 5 - Prob. 12PACh. 5 - Prob. 13PACh. 5 - Prob. 14PACh. 5 - Prob. 15PACh. 5 - Prob. 16PACh. 5 - Prob. 17PACh. 5 - Prob. 1PBCh. 5 - Prob. 2PBCh. 5 - Prob. 3PBCh. 5 - Prob. 4PBCh. 5 - Prob. 5PBCh. 5 - Prob. 6PBCh. 5 - Prob. 7PBCh. 5 - During 2019, Jake Gore worked for two different...Ch. 5 - Prob. 9PBCh. 5 - Prob. 10PBCh. 5 - Prob. 11PBCh. 5 - Prob. 12PBCh. 5 - Prob. 13PBCh. 5 - Prob. 14PBCh. 5 - Prob. 15PBCh. 5 - Prob. 16PBCh. 5 - Prob. 17PBCh. 5 - Prob. 1CP
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