Robertson Company paid wages of $515,000 for the year. Included in the payments was $250,000 paid...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Robertson Company paid wages of $515,000 for the year. Included in the payments was $250,000 paid to hourly employees over the $7,000 limit for each employee. The only employees who were not paid hourly were the president and vice president who were paid $125,000 and $90,000, respectively. Included in the wages was a payment of $2,000 to a director who only attended director meetings. Since the FUTA wage limit is $7,000 per employee, Robertson Company would pay a FUTA tax on $62,000 [$515,000 $250,000 - $201,000 (president and vice president over the limit by $118,000 and $83,000, respectively) - $2,000 (director's pay)]. The partnership Keenan and Kludlow paid the following wages during this year: M. Keenan (partner) $108,500 S. Kludlow (partner) 96,500 N. Perry (supervisor) 52,000 T. Lee (factory vworker) 36,100 R. Rolf (factory worker) 26,600 D. Broch (factory worker) 6,800 S. Ruiz (bookkeeper) 25.800 C. Rudolph (maintenance) 4,700 In addition, the partnership owed $200 Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following: Round your answers to the nearest cent. a. Net FUTA tax for the partnership for this year b. SUTA tax for this year Robertson Company paid wages of $515,000 for the year. Included in the payments was $250,000 paid to hourly employees over the $7,000 limit for each employee. The only employees who were not paid hourly were the president and vice president who were paid $125,000 and $90,000, respectively. Included in the wages was a payment of $2,000 to a director who only attended director meetings. Since the FUTA wage limit is $7,000 per employee, Robertson Company would pay a FUTA tax on $62,000 [$515,000 $250,000 - $201,000 (president and vice president over the limit by $118,000 and $83,000, respectively) - $2,000 (director's pay)]. The partnership Keenan and Kludlow paid the following wages during this year: M. Keenan (partner) $108,500 S. Kludlow (partner) 96,500 N. Perry (supervisor) 52,000 T. Lee (factory vworker) 36,100 R. Rolf (factory worker) 26,600 D. Broch (factory worker) 6,800 S. Ruiz (bookkeeper) 25.800 C. Rudolph (maintenance) 4,700 In addition, the partnership owed $200 Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following: Round your answers to the nearest cent. a. Net FUTA tax for the partnership for this year b. SUTA tax for this year
Expert Answer:
Answer rating: 100% (QA)
A tax is a compulsory charge paid to the government by everyone who is generatin... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The firm's EBIT (earnings before interest and taxes) is$5million. The interest rate for its debt is8%, and its tax rate is20%. a. If the firm uses$100million in equity to finance its asset (i.e.,...
-
BZ received a salary of R34 000 for the year ended 31 March 2013. BZ also received a bonus of R1 700 and benefits in kind valued at R2 150. BZ was entitled to a personal tax allowance of R5 750 for...
-
Roofling Company paid wages of $319,600 this year. Of this amount, $193,900 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 4.3% for Roofling Company. Due to cash...
-
Decedent died owning an insurance policy that would pay $2 million to Beneficiary. Six months later, the insurance company paid Beneficiary $2 million plus $50,000 interest. What portion of the...
-
What financial statements are used to prepare the statement of cash flows?
-
You expect an after-tax rate of return of 28% on your investments. A target company earns $263,000 (after taxes, per year). What is the maximum amount you would be willing to pay for this company?
-
Carefully consider the relationship between globalization and the nation-state. In what ways did historic patterns of globalization play an important role in the creation of nation-states? To what...
-
Sean Moon is president, secretary, treasurer, sole director, and sole shareholder of Streetz, an S corporation real estate company. He manages all aspects of the companys operations, and he is the...
-
A 600 meters copper wire is to be used for a three loads that dissipates 1600W.795W, 1560W power from a 230Vac supply. Given the first load is thrice as far as the second load. The third load is a...
-
A researcher studied the number of anxiety attacks recounted over a two-week period by 30 people in psychotherapy for an anxiety disorder. In an article describing the results of the study, the...
-
I need help with question 5 , 7, 8, and 9 @ https://linuxzoo.net/page/wildcards_tut3.html 5. Using square brackets, move all the files from the misc directory that contain the numbers 2 or 3 into the...
-
Are the changes Guava is implementing going to impact the company negatively? What other changes should Guava make, if any?
-
Jason Furman served as the chairman of the White House Council of Economic Advisers under President Obama. In an opinion column in the Wall Street Journal discussing President Trumps tax reform...
-
Determine whether the following statement is true or false: When testing the claim that the mean annual income of statistics professors in New York is equal to the mean annual income of statistics...
-
If the sample data were to result in the scatterplot shown here, what is the value of the linear correlation coefficient r?
-
Prove that the C D F C D F of the geometric family of densities can be defined by F ( b ) = [ 1 ( 1 p ) trunc ( b ) ] F ( b ) = [ 1 ( 1 p ) trunc ( b ) ] I [ 1 , ) ( b ) I [ 1 , ) ( b ) .
-
Which of the following statements are true regarding the 2017 Tax Cuts and Jobs Act? O O O O neither generally eliminated taxes on repatriated earnings, nor illustrated a net decrease of direct...
-
Dawson Companys balance sheet information at the end of 2019 and 2020 is as follows: Additional information: The company did not issue any common stock during 2020. Required : Next Level Fill in the...
-
During the past week, one of your newly employed payroll associates dropped into your office to ask several questions regarding wage reporting for federal income and social security tax purposes. If...
-
During 2013, Matti Conners, president of Maggert Company, was paid a semimonthly salary of $5,200. Compute the amount of FICA taxes that should be withheld fromher: OASDI HI a. 9th paycheck S b. 22nd...
-
The biweekly taxable wages for the employees of Wee Ones Foods follow. Compute the FICA taxes for each employee and the employer's FICAtaxes. Biweekly Taxable FICA Taxes Employee No. 8 OASDI Employee...
-
Using the demand and cost curves of an individual firm in oligopoly, demonstrate the effects of each of the following: a. The Clean Air Act b. The Nutrition and Labeling Act c. A ban on smoking...
-
Which of the three types of government policiesantitrust, social regulation, and economic regulationis the basis for each of the following? a. Beautician education standards b. Certified Public...
-
Explain why a market in which broadcast licenses can be purchased might be more efficient than having the FCC assign licenses on some basis designed by the FCC.
Study smarter with the SolutionInn App