Question

I am not really understanding this question or how to solve it.

Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. The information listed below refers to the employees of Brennan Company for the year ended December 31, 20--. The wages are separated into the quarters in which they were paid to the individual employees. Name Social Security # 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Total $-0- $6,100 $6,300 $4,100 $16,500 May S. Sun David R. Maro (Foreman) 000-00-0001 000-00-0003 4,000 3,800 4,200 16,700 4,700 3,200 000-00-1998 2,900 2,700 2,900 11,700 Randy A. Wade Hilary B. Cahn Paul C. Morse (Manager) 4,900 5,500 18,300 000-00-7413 000-00-6523 3,800 9,000 4,100 8,800 4,100 9,500 10,000 37,300 Morrie T. Black 000-00-6789 6,500 -0- 10,600 000-00-3334 2,500 2,300 1,900 8,500 Kelly K. Woods Terry M. Brennan (President) 000-00-1014 15,000 14,700 15,500 1,800 16,900 9,800 62,100 Art A. Mintz 000-00-7277 -0- 7,000 16,800 Megan T. Rudolph 8,800 8,900 26,100 000-00-8111 000-00-2623 8,400 7,500 Kurt A. Weiner 7,700 8,400 23,600 19,500 Ryan C. Harrow 000-00-3534 5,300 5,700 6,100 2,400 Totals $57,800 $68,200 $74,900 $66,800 $267,700 For 20--, State D's contribution rate for Brennan Company, based on the experience-rating system of the state, was 3.6% of the first $7,000 of each employee's earnings. The state tax returns are due one month after the end of each calendar quarter. During 20--, the company paid $3,024.00 of contributions to State D's unemployment fund. Employer's phone number: (613) 555-0029. Employer's State D reporting number: 00596. Using the forms below, complete the following for 20--. Indicate on each form the date that the form should be electronically submitted and the amount of money that must be paid. a. The last payment of the year is used to pay the FUTA tax for the fourth quarter of 20-- (the first three-quarter's liability was more than the $500 threshold). State D is not a credit reduction state. Enter the date in mm/dd/yyyy format. Hint: There's only one employee who has not capped. Date 1/31/20-- ✓ Amount $ 1.80 b. Employer's Report for Unemployment Compensation, State D-4th quarter only. Item 1 is the number of employees employed in the pay period that includes the 12th of each month in the quarter. For Brennan Company, the number of employees is ten in October, nine in November, and eight in December. All employees earned 13 credit weeks during the last quarter except for Sun (8) and Harrow (9). Indicate on each form the date that the form should be submitted and the amount of money that must be paid. The president of the company prepares and signs all tax forms. If an input box does not require an entry, leave it blank. If an amount is zero, enter "0". Hint: Check calendar for 20-- State D Form UC-2 REV 08-18, Employer's Report for Unemployment Compensation Read Instructions-Answer Each Item DUE DATE QTR./YEAR 01/31/20-- 4/20 - 3RD MONTH 1ST MONTH 10 2ND MONTH 9 EXAMINED 8 → 1. TOTAL COVERED EMPLOYEES IN PAY PERIOD INCL. 12TH OF MONTH BY: DETACH HERE FOR DEPT. USE Signature certifies that the information contained herein is true and correct to the best of the signer's knowledge. 2. GROSS WAGES 60 66,800 XXX X X X X X X XXXXXX 10. SIGN HERE-DO NOT PRINT Terry M. Brennan 3. EMPLOYEE CONTRIBUTIONS 40.08 x TITLE DATE PHONE = President 1/31/- ✓ 613-555-0029 4. TAXABLE WAGES FOR EMPLOYER CONTRIBUTIONS 5. EMPLOYER 65,800 11. FILED PAPER UC-2A INTERNET UC-2A 12. FEDERAL IDENTIFICATION NUMBER CONTRIBUTIONS DUE (RATE X ITEM 4) 0. EMPLOYER'S ACCT. NO. 00596 CHECK DIGIT 6. TOTAL CONTRIBUTIONS DUE (ITEMS 3 + 5) Employer name and address Make any corrections on Form UC-2B 3.6% EMPLOYER'S CONTRIBUTION RATE 7. INTEREST DUE SEE INSTRUCTIONS BRENNAN COMPANY 123 SWAMP ROAD PIKESVILLE, D STATE 10777-2017 8. PENALTY DUE SEE INSTRUCTIONS 0.lv 9. TOTAL REMITTANCE (ITEMS 6 + 7 + 8) MAKE CHECKS PAYABLE TO: State D UC FUND SUBJECTIVITY DATE REPORT DELINQUENT DATE

Answer 1

4. TAXABLE WAGES FOR EMPLOYER CONTRIBUTIONS

Enter the amount of taxable wages paid to employees during this quarter. Do NOT enter exempt wages. A If there are no taxable wages for this quarter, enter zero (0).

Subtract Excess wages- Calculate for each employee how much,if any,of the total wages paid to that employee in the quarter are in excess of the first $ 7000 paid to that employee in the same calendar year(Such excess wages must be reported in the quarter earned,but are not taxable)

Name	4th Qtr (1)	Exempted Wages (2)	Excess Wages(1-2)
Paul C Morse	10000	7000	3000
Terry M.Brennan	16900	7000	9900
Art A Mintz	9800	7000	2800
Kurt A Weiner	8400	7000	1400
Excess Wages			17100

Total Wages - Excess Wages = Taxable Wages

$ 66,800 - $ 17,100 = $ 49,700

5.EMPLOYER CONTRIBUTION DUE RATE

RATE * ITEM 4 = 3.6% * $49,700 = $1789.20

6. TOTAL CONTRIBUTIONS

$ 1789.20

9. TOTAL REMITTANCE

$1789.20