Peroni Company paid wages of $175,400 this year. Of this amount, $106,500 was taxable for net...

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Peroni Company paid wages of $175,400 this year. Of this amount, $106,500 was taxable for net FUTA and SUTA purposes. The sta

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Answer 1

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ans 1
The SUTA payment is not made on time so 90% of SUTA tax would be allowed as a credit against the FUTA tax.
	in $
SUTA contribution is	2971.35
1065003.1%90%
Add: Additional credit upto 5.4%	2449.50
106500*(5.4%-3.1%)
Total FUTA tax credit	$5420.85

ans 2
Gross FUTA tax (106500*6%)	6390.00
Less: FUTA tax credit	5420.85
Net FUTA tax	969.15

ANS 3
Net FUTA tax	969.15
FUTA tax without the penalty	639.00
(106500*.6%)
Penalty	330.15

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