PRAU6DSP2
Unit 6: Unit 6: Unemployment Compensation Taxes - Discussion
Scroll down and click “Respond” to post your reply to the Discussion questions. Please review the Discussion Board Participation Grading Rubric on your course Syllabus.
This is important information that will ensure that you earn maximum points. Your postings should be qualitative and provide substantive depth that advances the discussion.
This is important information that will ensure that you earn maximum points. Your postings should be qualitative and provide substantive depth that advances the discussion.
Discussion 2 of 2
Employers pay FUTA and SUTA taxes on employee wages. In determining the FUTA and SUTA taxable earnings, how could an employer be liable for a net FUTA tax greater than 0.8 percent? Continuing with Continuing Payroll Problem B on page 5-55 determine the taxable wages for FUTA and SUTA. Each person show the work for one hourly and one salaried employee only.
CONTINUING PAYROLL PROBLEM • B
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 Olney Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.6785% on the first $8,500 of each employee's earnings. Employees pay 0.07% on total gross pay.
Note: Retain your partially completed payroll register for use at the end of Chapter 6.
11 years ago 10
Answer(1)
Purchase the answer to view it
- the_template.xlsx
Bids(1)
other Questions(10)
- Timed Quiz- Masters level Finance 10 questions (1 hour to complete)
- bis 375
- due Friday
- ACC - The Tax Return Problem of Carrie A Morgan
- Claims
- environmental problem
- as discussed
- fastwritter
- math homework after 1 hour
- A florist earns a profit of $2.00 on each bunch of carnations, $3.00 on each bunch of lilies and $1.00...