The partnership of Keenan and Kludlow paid the following wages during this year:

Question

The partnership of Keenan and Kludlow paid the following wages during this year:

In addition, the partnership owed $200 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following:

Round your answers to the nearest cent.

a. Net FUTA tax for the partnership for this year
$

b. SUTA tax for this year
$

M. Keenan (partner) $112,000 S. Kludlow (partner) 99,500 N. Perry (supervisor) 52,500 T. Lee (factory worker) 37,300 R. Rolf (factory worker) 28,300 D. Broch (factory worker) 6,200 S. Ruiz (bookkeeper) 26,600 C. Rudolph (maintenance) 5,300

Explanation / Answer

a Calculation of FUTA Tax Payable: Particulars Amount Amount Gross Wages 3,67,700 Less Salary to partner keenan 1,12,000 Less Salary to partner Kludlow 99,500 Less Salaries above 7000 limit Perry (52,500 -7,000) 45500 Lee (37,300 - 7,000) 30300 Rolf (28,300 - 7,000) 21300 Ruiz (26,600 - 7,000) 19600 3,28,200 Taxable Wages (1) 39,500 FUTA Tax Rate @ 0.6%     (2) 0.60% FUTA Tax Payable = (3) = (1) * (2) $237 b Calculation of SUTA Tax Payable Particulars Amount Amount Gross Wages 3,67,700 Less Salary to partner keenan 1,12,000 Less Salary to partner Kludlow 99,500 Less Salaries above 9000 limit Perry ($52,500 -$9,000) 43500 Lee ($37,300 - $9,000) 28300 Rolf ($28,300 - $9,000) 19300 Ruiz ($26,600 - $9,000) 17600 3,20,200 Taxable Wages (1) 47,500 FUTA Tax Rate @ 2.95%     (2) 2.95% FUTA Tax Payable = (3) = (1) * (2) $1401.25

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