Question

1. compute and record the employee’s SUTA contributions (employees pay 0.06% on total gross pay

Note: Round your final answers to nearest cent. KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20-- EARNINGS DEDUCTIONS NET PAY Name Gross OASDI HI FIT SIT SUTA Grp. Ins. Health Ins. Ck. No. Amount CIT $21.00 SIMPLE $20.00 Carson $700.00 $43.40 $10.15 $60.00 $21.49 Wilson 897.04 55.62 13.01 92.00 27.54 26.91 50.00 Utley, 678.75 877.10 790.00 539.15 623.08 42.08 54.38 48.98 33.43 38.63 0.84 12.72 11.46 7.82 9.00 26.00 29.00 62.00 4.00 Smith, 20.84 26.93 24.25 16.55 19.13 20.36 26.31 23.70 16.17|| 40.00 50.00 20.00 40.00 Fay, G. | Robey, 18.60 50.00 Schork, 23.19 60.00 Hardy, 773.08 666.11 1,000.00 47.93 11.21 41.30 9.66 62.00 14.50 $467.75 $109.40 64.00 23.73 2.00 20.45 14.00 30.70 $353.00 $231.61 Kipley 19.98 30.00 $226.31 30.00 80.00 $440.00 Totals $

2. Net FUTA tax : since this is the first pay period of tje uear none of the employees are near the $7000 ceiling; therefore each employess gress earnings us subject to the FUTA tax (the employer rate is 0.6%).

3. SUTA tax: Since Kipley Company is new employer, Pennsylvia has assigned the company contribution rate 3.689% on the first $10,000 of each employee’s earnings.

Answer 1

1	SUTA=Gross pay*0.06%
	Name	Gross pay	SUTA
		a	a*0.06%
	Carson,F.	700	0.42
	Wilson,W.	897.04	0.54
	Utley,H.	678.75	0.41
	Fife,L.	877.1	0.53
	Smith,L.	790	0.47
	Fay,G.	539.15	0.32
	Robey,G.	623.08	0.37
	Schork,T.	773.08	0.46
	Hardy,B.	666.11	0.40
	Kipley	1000	0.60
	Total	7544.31	4.53
2&3.	FUTA=Total earnings*0.6%
	SUTA=Total earnings*3.689%
			Employer register
			Payroll taxes
		Earnings	OASDI	HI	FUTA	SUTA
	Totals	7544.31	467.75	109.39	45.27	278.31
					(7544.31*0.6%)	(7544.31*3.689%)