Question

The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service.

Complete the following steps:

1. Net FUTA tax: Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%).
2. SUTA tax: Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee’s earnings.

The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance Complete the following step 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 CIT SIMPLEGrp. Ins. Health Ins. Ck. No. Amount Carson $700.00 $43.40 $10.15 $60.00 $21.49 0.42 $21.00 $20.00 Wilson, 897.04 55.62 13.01 92.0027.54 0.54 26.91 50.00 Utley, 0.41 20.36 40.00 0.5326.31 50.00 0.47 | 23.70| 0.32 | 16.17 40.00 0.37 18.69 50.00 678.7542.08 9.8426.00 20.8 Fife, L 877.10 54.38 12.7229.00 26.93 24.25 4.00 16.55 19.13 Smith 790.00 48.9811 11.46 62.00 20.00 Fay, G. Robey G. Schork 539.15 33.43 7.82 623.08 38.63 9.03 773.08 47.9311.21 64.0023.73 0.46 23.19 60.00 Hardy 666.11 41.30 9.66 0.40 19.98 30.00 0.630.00 80.00 4.52 $226.31 $440.00 2.0020.45 Kipley1,00000 6214.5014.00 30.70 Totals $467.75 $109.401 $353.00 | $231.61 | 뛰 Employer Register The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service Complete the following steps . Net FUTA tax ince this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee's gross earnings is subject to the FUTA tax. (The employer rate is 0.6%). 2. SUTA tax: Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee's earnings. KIPLEY COMPANY,INC. Employer Register Payroll Taxes Earnings OASDI HI FUTA SUTA Totals $467.75 $109.39

Answer 1

ANSWER: EARNINGS DEDUCTIONS SUTA G 0.696 Mangino, R. Kroll, C Wickman, S. Foley, L Olney, M.

Part 2 OLNEY COMPANY, INC. Employer Register Payroll Taxes FUTA 7,544.31*.696) $452.60 SUTA (7,544.31 3.68996 $278.30 Totals