In the following problems, use the net FUTA tax rate of 0.6% on the first $7,000
ID: 2501957 • Letter: I
Question
In the following problems, use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. SUTA will be paid on the first 8,500 for ER with no limit for the EE.
Niemann Company has a SUTA tax rate for the ER is 7.1% and .03% for the EE. The taxable payroll for the year for FUTA and SUTA is $82,600. Assume that the total payroll for the year is also $82,600.
Use the following information for #4 and 5
Stys Company’s payroll for the year is $1,210,930. Of this amount, $510,710 is for wages paid in excess of $7,000 to each individual employee. The SUTA tax rate for the company is 3.2% on the first $7,000 of each employee’s earnings.
Question 1.1. The amount of FUTA tax for the year is (Points : 3) $495.60$5,864.60
$5,121.20
$4,460.40 Question 2.2. The amount of SUTA tax for the ER for the year is (Points : 3) $660.80
$5,121.20
$5,864.60
$4,460.40 Question 3.3. The amount of SUTA tax deducted from the EE wages would be: (Points : 3) $58.65
$33.04
$24.78
$66.08 Question 4.4.
Use the following information for #4 and 5
Stys Company’s payroll for the year is $1,210,930. Of this amount, $510,710 is for wages paid in excess of $7,000 to each individual employee. The SUTA tax rate for the company is 3.2% on the first $7,000 of each employee’s earnings.
The amount of FUTA tax before the credit is: (Points : 3) $4,201.32$4,460.40
$527.00
$459.00 Question 5.5. The amount of the SUTA tax credit would be: (Points : 3) $25,121.20
$1,660.80
$224.07
$22,407.04
Explanation / Answer
Question 1.1.
420
Total FUTA tax payable==82600/7000*420
=$ 4956
Question 1.2
Employer contribution=82600/7000*7000*7.1%
=$ 5,864.6
Question 1.3
Employee contribution==82600/7000*7000*0.03%
Taxable salary 82,600.00 FUTA TAX if wages exceeds 7000(7000*6%)420
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