Refer to the partially completed payroll register that you worked on at the end of Chapter 4. You will now compute the employer's liability for unemployment taxes (FUTA and SUTA) for the pay of January 14. These computations will be used at the end of Chapter 6 in recording the payroll tax entries.

   To compute the employer's liability for unemployment taxes, proceed as follows:

1. Enter each employee's gross earnings in the Taxable Earnings—FUTA and SUTA columns.

2. Total the Taxable Earnings—FUTA and SUTA columns.

3. At the bottom of your payroll register, compute the following:

a. 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 employee's gross earnings is subject to the FUTA tax.

b. SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.6785% on the first $9,000 of each employee's earnings. Employees pay 0.07% on total gross pay.

1. In the appropriate column of the payroll register, record the amount to be withheld for group life insurance. Each employee contributes 85¢ each week toward the cost of group insurance coverage, with the exception of Smith and Schork (Kipley Company), who are not yet eligible for coverage under the company plan.

2. Record the amount to be withheld for health insurance. Each employee contributes $1.65 each week toward the cost of health insurance.

This is what I have so far

Continuing Payroll Problem-A
KIPLEY COMPANY, INC.
PAYROLL REGISTER
FOR PERIOD ENDING			January 8, 20 - -
			MARITAL STATUS	NO. OF W/H ALLOW.	REGULAR EARNINGS				OVERTIME EARNINGS						DEDUCTIONS																	NET PAY			TAXABLE EARNINGS
					HOURS WORKED	RATE PER HOUR			HOURS WORKED	RATE PER HOUR
													TOTAL		FICA													GROUP		HEALTH		CHECK
EMPLOYEE							AMOUNT				AMOUNT		EARNINGS		OASDI		HI		FIT	SIT		SUTA		CIT		SIMPLE		INSURANCE		INSURANCE		NO.	AMOUNT		OASDI		HI		FUTA		SUTA
11 Carson, Fran M.			S	1	40	$17.50	700.00			$0.00			700.00		43.40		10.15		17.00	9.21				9.00		20.00						313
12 Wilson, William A.			S	0	40	$17.25	690.00		8	$25.88	207.00		897.00		55.61		13.01		34.00	11.58				11.31		50.00						314
13 Utley, Harry T.			M	2	37.5	$18.10	678.75			$0.00			678.75		42.08		9.84		-	9.33				9.11		40.00						315
21 Fife, Lawrence R.			M	4	40	$17.90	716.00		6	$26.85	161.10		877.10		54.38		12.72		-	11.88				11.61		50.00						316
22 Smith, Lucy K.			S	2	40	$19.75	790.00			$0.00			790.00		48.98		11.46		19.00	11.97				11.70		20.00						317
31 Fay, Gretchen R.			M	3	40	$12.88	515.20		1.25	$19.32	24.15		539.50		33.44		7.82		11.00	16.55				16.17		40.00						318
32 Robey, Glenda B.			M	6	40	$15.58	623.20			$0.00			623.20		38.64		9.04		-	12.04				11.77		50.00						319
33 Schork, Thomas K.			S	1	40	$19.33	773.20			$0.00			773.20		47.94		11.21		47.00	16.65				16.27		60.00						320
51 Hardy, Barbara T.			M	5	40	$14.48	579.20		4	$21.72	86.88		666.08		41.30		9.66		-	12.30				12.02		30.00						321
99 Kipley, Carson C.			M	7	40	$25.00	1,000.00			$0.00			1,000.00		62.00		14.50		24.00	30.70				30.00		80.00						322
Totals							7,065.55				479.13		7,544.68	*	467.77	*	109.41		152.00	142.21				138.96		440.00

						NET PAY			TAXABLE EARNINGS
		GROUP		HEALTH		CHECK
SIMPLE		INSURANCE		INSURANCE		NO.	AMOUNT		OASDI		HI		FUTA		SUTA
20.00						313
50.00						314
40.00						315
50.00						316
20.00						317
40.00						318
50.00						319
60.00						320
30.00						321
80.00						322
440.00