Question: Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA. Note: For

Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.

Example 5-1

Parlone Company has paid wages of $4,000 to an employee in State A. During the year, the employee is transferred to State B, which has a $7,000 taxable salary limitation for its state unemployment tax. The company has a credit of $4,000 against this $7,000 limit. Thus, the company has to pay State B's unemployment tax on only the next $3,000 of wages earned by that worker in State B during the remainder of the calendar year.

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 $7,000 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 the following; round your answers to the nearest cent.

a. Amount of SUTA tax the company must pay to Louisiana on Sherm's wages $fill in the blank 1

b. Amount of SUTA tax the company must pay to Florida on Sherm's wages $fill in the blank 2

c. Amount of the net FUTA tax on Sherm's wages $fill in the blank 3

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or...

what is the amount on a. Figure 5.2. Figure 5.5 and Figure 5.6 Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA! Note: For this...

For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. what is the date in the amount of the FUTA text payment for the fourth quarter of 20--? State D is not a...

Figure 5.2 , Figure 5.5 and Figure 5.6 Since the SUTA rates changes are made at the end of each year, the available 2022 rates were used for FUTA and SUTA. Note: For this textbook edition the rate...

Employer name (Make corrections on Form UC-2B) Lemonica Company 1. Name and telephone number of preparer Employer State D UC account no. 00596 2. Total number of pages in this report Check Quarter...

Since the SUTA rates changes are made at the end of each year, the available 2022 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate...

Figure 5.2, Figure 5.5 and Figure 5.6 Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. Note: For this textbook edition the rate...

Chapter 5 eBook Print Item Since the SUTA rates changes are made at the end of each year, the available 2021 rates were used for FUTA and SUTA. ? Note: For this textbook edition the rate 0.6% was...

Chapter 5 eBook Print Item ? Since the SUTA rates changes are made at the end of each year, the available 2021 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was...

For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-8 1. The Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll...

Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for RUTA and SUTA. Notes For this textbook edition the rate 0.6% was used for the FUTA tax rate for...

Calculation of the position (position : X, Y, Z) and direction (orientation: A, B, C are yaw, pitch, roll angles respectively) of the tool of the robotic arm relative to or to the user's Base Frame...

The operations manager of a plant that manufactures tires wants to compare the actual inner diameters of two grades of tires, each of which is expected to be 575 millimeters. A sample of five tires...

El PAGO DE INTERESES es una cuenta de PASIVO ? verdad o falso

In 1 9 8 5 , the first US . Open Golf Championship was held. The winner s prize money was $ 1 5 0 . In 2 0 2 0 , the winner's check was $ 2 . 2 million. What was the annual percentage increase in the...