101- chapter 12 Review Pat Sullivan is calculating the FUTA tax he owes for his
ID: 2553317 • Letter: 1
Question
101- chapter 12 Review Pat Sullivan is calculating the FUTA tax he owes for his employee, Jason Levine. Jason carned $101,000 prior to the current pay period and another $2,000 this pay period. How much FUTA tax is owed on Jasons carnings this pay period? a. $8 b. $62 c. $29 d. so 2. Which of these factors would not affect the SUTA rate an employer pays? a. The state's recent experience with unemployment claims b. c. d. The state where the employer operates The state where employees live The employer's record of unemployment claims During this pay period, Shand Company has $825 of earnings that are subject to FUTA. However, Shand Company qualifies for the full credit allowed for timely SUTA contributions. How much FUTA tax does Shand Company owe for this pay period? 3. a. $11.96 c. $6.60 b. $44.55 d. $51.15 The rates for FUTA and SUTA are 0.8% and 5.4% on the first S7,000 of an employee's earnings at Sherwood Logging Co. How much will the company be taxed on Sheryl Peterson's current carnings of $5,500 if her year-to-date earnings before this pay period were $5,500? a. $88 for FUTA and $594 for SUTA 4· c. $44 for FUTA and $297 for SUTA b. $12 for FUTA and $81 for SUTA d. $56 for FUTA and $378 for SUTA 5. Gross wages for the period are $123,000. Wages subject to FICA -OASDI are $39,000. Wages subject to The SUTA rate is 5.4%. Compute the employer's payroll tax. FUTA and SUTA tax are $36,000. a. $5215.50 b. $10,635.00 C. $6,433.50 d. $11,641.50 6. Which of the following taxes is used to provide benefits to qualified unemployed workers? a. FUTA b. FICA-OASDI c. FICA-HIExplanation / Answer
1 As FUTA taxes are paid on first 7,000 earnings as earnings has already crossed its limit So No fUTA taxes to be paid So correct answer is D $0 2 As a single employers record cannot change the SUTA rate So correct answer is D 3 Earnings subject to FUTA taxes 825 FUTA tax rate 0.80% FUTA taxes 6.6 (825*.8%) So correct answer is C 4 Earning subject to SUTA and FUTA taxes 1500 (7000-5500) Earnings subject to FUTA taxes 1500 FUTA tax rate 0.80% FUTA taxes 12 Earnings subject to SUTA taxes 1500 SUTA tax rate 5.40% SUTA taxes 81 Correct answer is B 5 Earnings subject to SUTA taxes 36000 SUTA tax rate 5.40% SUTA taxes 1944 Earnings subject to FUTA taxes 36000 FUTA tax rate 0.80% FUTA taxes 288 Earnings subject to FICA OASDI 39000 Tax rate 7.65% (6.2%+1.45%) Total FICA OADSI 2983.5 Total payroll expense 5215.5 (1944+288+2983.5) Correct answer is A 6 FUTA taxes are used (federal unemployed taxes) So correct answer is A
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