Below is a list of employees for Doolin Insurance Services, with the amount of qualifying earnings they
Question:
Below is a list of employees for Doolin Insurance Services, with the amount of qualifying earnings they have been paid during the calendar year. First determine the taxable earnings for each employee.
| | Year to Date |
Faye Deering | $35331.00 | $ |
Manuel Estrada | $11225.50 | $ |
Jon Eskridge | $6530.00 | $ |
Janet Lee | $54360.00 | $ |
Next, total the taxable earnings from above and apply the current FUTA tax rate to determine the gross FUTA tax due. Round the FUTA tax to the nearest cent.
Total taxable earnings | $ | |
× Rate of FUTA tax | | % |
Amount of Gross FUTA tax | $ | |
Finally, compute the SUTA credit and subtract it from the gross FUTA calculated in the prior step. Assume that state taxable wages are the same as federal taxable wages, and that Doolin Insurance Services is eligible for the entire SUTA credit. Round the SUTA tax credit and FUTA Due answers to the nearest cent.
Total state taxable earnings | $ | |
× Rate of SUTA tax credit | | % |
SUTA tax credit | $ | |
Amount of net FUTA tax due | $ | |
Materials Science and Engineering An Introduction
ISBN: 978-0470419977
8th edition
Authors: William D. Callister Jr., David G. Rethwisch