Question: Continuing Payroll Problem, 5B: Chapter 5 This problem continues the computing and recording employee payroll for the Olney Company for the pay period ending January
Continuing Payroll Problem, 5B: Chapter 5
This problem continues the computing and recording employee payroll for the Olney Company for the pay period ending January 8th, 20--. Tasks previously performed include determining gross earnings, FICA withholding, federal, state and city taxes. These computations are shown in the Employee Payroll Register.
Requirements:
- Compute and record the employee's SUTA contributions.
- Compute and record the Olney Company's SUTA and FUTA contributions.
Complete the following step:
- Compute and record the employee's SUTA contributions (employees pay 0.06% on total gross pay).
Note: Round your final answers to nearest cent.
| ONLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20-- | |||||||||||||
| EARNINGS | DEDUCTIONS | NET PAY | |||||||||||
| Name | Gross | OASDI | HI | FIT | SIT | SUTA | CIT | SIMPLE | Grp. Ins. | Health Ins. | Ck. No. | Amount | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mangino, R. | $740.00 | $45.88 | $10.73 | $64.00 | $22.72 | $ | $7.40 | $20.00 | |||||
| Flores | 1,058.80 | 65.65 | 15.35 | 127.00 | 32.51 | 10.59 | 50.00 | ||||||
| Palmetto, C. | 685.30 | 42.49 | 9.94 | 26.00 | 21.04 | 6.85 | 40.00 | ||||||
| Waters, R. | 1,045.35 | 64.81 | 15.16 | 54.00 | 32.09 | 10.45 | 60.00 | ||||||
| Kroll, C. | 952.00 | 59.02 | 13.80 | 80.00 | 29.23 | 9.52 | 20.00 | ||||||
| Ruppert, C. | 837.50 | 51.93 | 12.14 | 32.00 | 25.71 | 8.38 | 40.00 | ||||||
| Scott, W. | 780.00 | 48.36 | 11.31 | 18.00 | 23.95 | 7.80 | 50.00 | ||||||
| Wickman, S. | 807.69 | 50.08 | 11.71 | 69.00 | 24.80 | 8.08 | 50.00 | ||||||
| Foley, L. | 1,233.16 | 76.46 | 17.88 | 61.00 | 37.86 | 12.33 | 30.00 | ||||||
| Olney, M. | 1,500.00 | 93.00 | 21.75 | 68.00 | 46.05 | 15.00 | 80.00 | ||||||
| Totals | $597.68 | $139.77 | $599.00 | $295.96 | $ | $96.40 | $440.00 | ---- | |||||
Taxable Earnings
The Federal Unemployment Tax Act (or FUTA) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service.
In the Totals row, complete the following:
- Net FUTA tax: Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employees gross earnings is subject to the FUTA tax. (The employer rate is 0.6%).
- SUTA tax: Since Olney Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employees earnings.
Note: Round each value to the nearest cent.
| OLNEY COMPANY, INC. Taxable Earnings Payroll Taxes | |||||||
| Earnings | OASDI | HI | FUTA | SUTA | |||
|---|---|---|---|---|---|---|---|
| Totals | $ | $597.67 | $139.78 | $ | $ | ||
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