Question

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_16. Jafet has two employees who eamed the following amounts during 2018 Sem $17,000 Mesec 5.000 If Jafet timely pays 5.4% for state unemployment tax, what is the amount of his 2018FUTA after the state Credit: A. B C SO $72 $132 $1.188 None of the above. The answer is E 17. Lazarus has a domestic employee who earned $4,000 during 2018. If Lazarus timely pays 5.4 percent for state unemployment tax, what is the amount of his 2018 FUTA after the state tax credit? A $24 B $4.20 C $2.40 D. $0 since domestic employees do not get unemployment benefits E None of the above. The answer is 18. In 2018, Canaan Corporation had three employees. Two of the employees worked time and eamed salaries of $25,000 each. The third employee worked only part-time and earned $3,000. The employer timelypaidstate unemployment tax equal to 5.4% of each employee's wages up to $7.000. How much unemployment tax was paid to the state from Canaan Corporation for 2018? A C D $136 $168 5918 S1134 None of the above. The answer is _19. A taxpayer would be required to pay Social Security and Medicare taxes for her domestic employees in all but one of the following situations. To which of the following employees would this not be required? A Her babysitter who is paid $12,000 a year. B Her gardener who is paid $900 a year. C Her personal chef who is paid $18,000 a year D. Her cleaning lady who is paid $8,000 a year E. The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations _20. Amy is a single taxpayer. Her income tax liability in the prior year was $5.178. Amy earns $50,000 of income ratably during the current year and her tax liability is $4,372. To avoid penalty. Amy's smallest amount of required annual withholding and estimated payments is: A $4,372 B. $3.935 C $5,178 D. $4,660 E None of the above. The answer is

Answer 1

16. d) $ 1,188

FUTA = ($ 17,000 + $ 5,000) * 0.6% = $ 1,188

17. a) $ 24

FUTA = $ 4,000 * 0.6% = $ 24

18. c) $ 918

SUTA = ($ 7,000*2 + $ 3,000) * 5.4% = $ 918

19. b) A gardener who is paid $ 900 in a year.

Because a taxpayer would required to pay social security and medicare taxes when a family pays any household employee $2,100 or more in a calendar year (for 2019). Since all other household employees except gardener is paid more than $ 2,100, so taxpayer would required to pay social security and medicare taxes in all except gardener.