PRAU8A1P1

5-1A LO3,4.

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:

5-5A LO1,3.

Donner Company began its operations in September of the current year. During September, the company paid wages of $23,400. For the last quarter of the year, the taxable wages paid amounted to $64,700. None of the employees was paid more than $7,000 this year.

5-7A LO3,4.

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Ohio. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Ohio. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Ohio. Compute:

5-11A LO3,4.

During 2014, Jordan Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $86,700 and for SUTA, $171,000. Compute:

5-2A LO3,4.

Peyton Company's payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute:

5-4A LO3,4.

Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:

1. Under SUTA for Massachusetts on taxable payroll of $18,000, the contribution rate is 4%.

2. Under SUTA for New Hampshire on taxable payroll of $24,000, the contribution rate is 2.65%.

3. Under SUTA for Maine on taxable payroll of $79,000, the contribution rate is 2.9%.

4. Under FUTA, the taxable payroll is $103,500.

Compute:

5-14A LO 2,3,4.

Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year:

Grady and Monroe are each paid a weekly salary allowance of $950.

The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 10, 2014: