In April of the current year, Steelman Press Company transferred Ken Sherm from its factory in Louisiana

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In April of the current year, Steelman Press Company transferred Ken Sherm from its factory in Louisiana to its plant in Florida. The company's SUTA tax rates based on its experience ratings are 3.2% in Louisiana and 3.8% in Florida. The taxable wage limits are $7,700 in Louisiana and $8,500 in Florida. This year, Steelman Press Company paid Ken Sherm wages of $14,190; $4,950 were paid in Louisiana and the remainder in Florida. Compute:

a.Amount of SUTA tax the company must pay to Louisiana on Sherm’s wages. . . . . . . . . . . . . . . $_________

b. Amount of SUTA tax the company must pay to Florida on Sherm’s wages. . . . . . . . . . . . . . . $__________

c. Amount of the net FUTA tax on Sherm’s wages (Florida is a credit reduction state.) . . . . . . . . $__________

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Payroll Accounting

ISBN: 978-1133962533

2013 edition

Authors: Bernard J. Bieg, Judith A. Toland

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