Question

Calculate employer's total FUTA and SUTA tax. As TCLH Industries operates in North Carolina, assume a SUTA tax rate of 1.2% and a taxable earnings threshold of $23,500. Current period taxable earnings for FUTA and SUTA taxes are the same as those for FICA taxes. Year-to-date taxable earnings for FUTA and SUTA taxes, prior to the current pay period, are as follows:

• Zachary Fox: $0
• Calvin Bell: $20,478.57
• David Alexander: $198,450
• Michael Sierra: $117,600

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation

Payroll Register 12/16/2018 Pay Period 12/20/2018 Pay Date Deductions SocialMedicare Vol. With CheckNet Pay Security Earnings Total FWT SWT Employee Regular Regular Regular Overtime Overtime Overtime Rate EarningsEarnings Name Hours Rate Earnings Hours Number 092 093 40 40 Alexander, D n/a n/a Fox, Z $28.00 $1,120.00 1 $7.30 $292.00 11.5 n/a n/a $16.85 $6.06 $81.23 $42.00 $10.95 n/a n/a $42.00 $1,162.00 $67.00 $58.10 $72.04 $32.00 $47.08 S506.00 094 $75.00 $916.01 $303.24 $2,544.47 $1,818.68 Bell, C $125.93 $417.93 $16.00 $19.64 $25.91 $4,050.00n/a $2,450.00n/a $4,050.00 $740.10 $178.20 Sierra, M 095 $2,450.00 $252.72 $120.00 $148.80 $34.80 Totals $7,912.00 $167.93 $8,079.93 $1,075.82 $375.94 $246.75 $138.94 S660.08 $5,582.40

1: Zachary Fox

FUTA tax = $
SUTA tax = $

2: Calvin Bell

FUTA tax = $
SUTA tax = $

3: David Alexander

FUTA tax = $
SUTA tax = $

4: Michael Sierra

FUTA tax = $
SUTA tax = $

Answer 1

The Taxable Calculation is as under. The FUTA Tax has not been calculated due to lack of rate and threshold deduction. The first solution is given considering the assumption that the salary given is for 1 month which to be aggregrated to 12 Months

Zachary Fox
SUTA Tax
Net pay per month	$916
Total Salary Per year	$10,992
Threshold Deduction	$23,500
Net Taxable Income	-$12,508
Tax @ 1.2%	$0.00
Calvin Bell
SUTA Tax
Net pay per month	$303
Total Salary Per year	$3,639
Threshold Deduction	$23,500
Net Taxable Income	$19,861
Tax @ 1.2%	$0.00
David Alexander
SUTA Tax
Net pay per month	$2,544
Total Salary Per year	$30,534
Threshold Deduction	$23,500
Net Taxable Income	$7,034
Tax @ 1.2%	$84.40
Micheal Sierra
SUTA Tax
Net pay per month	$1,819
Total Salary Per year	$21,824
Threshold Deduction	$23,500
Net Taxable Income	-$1,676
Tax @ 1.2%	$0.00

The second solution is given assuming the salary paid till date as per question and salary for the balance period as per table

Zachary Fox
SUTA Tax
Prior Pay	$0.00
Current Pay	$916.01
Total	$916.01
Threshold Deduction	$23,500.00
Net Taxable Income	-$22,583.99
Tax @ 1.2%	$0.00
Calvin Bell
SUTA Tax
Prior Pay	$20,478.57
Current Pay	$303.24
Total	$20,781.81
Threshold Deduction	$23,500.00
Net Taxable Income	-$2,718.19
Tax @ 1.2%	$0.00
David Alexander
SUTA Tax
Prior Pay	$1,98,450.00
Current Pay	$2,544.47
Total	$2,00,994.47
Threshold Deduction	$23,500.00
Net Taxable Income	$1,77,494.47
Tax @ 1.2%	$2,129.93
Micheal Sierra
SUTA Tax
Prior Pay	$1,17,600.00
Current Pay	$1,818.08
Total	$1,19,418.08
Threshold Deduction	$23,500.00
Net Taxable Income	$95,918.08
Tax @ 1.2%	$1,151.02