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 5-7 Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are: FUTA tax – $130,000 × 0.6% = $780 SUTA tax – $210,000 × 0.9% = 1,890 Total unemployment taxes $2,670 During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,400. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax c. Total unemployment taxes
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 5-7 Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are: FUTA tax – $130,000 × 0.6% = $780 SUTA tax – $210,000 × 0.9% = 1,890 Total unemployment taxes $2,670 During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,400. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax c. Total unemployment taxes
Chapter5: Unemployment Compensation Taxes
Section: Chapter Questions
Problem 11PB
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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 this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.
Example 5-7
Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total
| FUTA tax – $130,000 × 0.6% | = | $780 |
| SUTA tax – $210,000 × 0.9% | = | 1,890 |
| Total unemployment taxes | $2,670 |
During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,400. Compute:
Round your answers to the nearest cent.
| a. Net FUTA tax | |
| b. Net SUTA tax | |
| c. Total unemployment taxes |
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