Solutions Chapt 8

Solutions Chapt 8 - The Employer's Tax Responsibilities:...

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ANSWERS TO DISCUSSION QUESTIONS 1. Payroll FICA-Social Security employer matches tax = FICA-Medicare employee amounts expense SUTA FUTA 2. A credit for the state unemployment program is applied against FUTA rate. The maximum amount of credit is 5.4 percent. 3. A state will assign each business a particular percentage for state unemployment taxes based on the employment record of the business. The rate will vary depending on the amount paid to former employees of the business due to layoffs, etc. 4. The employer is classified as a monthly or semi-weekly depositor depending on how much the employer has paid in Form 941 taxes during a time period known as the look-back period. 5. Form 8109 is a coupon for tax deposits. 6. Quarterly. 7. Correct. When the amount on line 13 is $2,500 or more, it must match the amount found on line 17 (d). 8. Bill is entitled to his W-2 within 30 days after his final day of employment with the company. 9. If a business has employees in only one state, it can file form 940-EZ. A business with employees in two or more states must file a Form 940. 10. Employer “A” does not have to make a FUTA tax deposit until its liability reaches $100.00 or more in any calendar quarter. If at the end of the year, the amount owed in FUTA taxes is less than $100.00, the employer will pay the amount due when it files Form 940-EZ or Form 940. 11.
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This homework help was uploaded on 02/20/2008 for the course ACCT 201 taught by Professor Peterv during the Spring '08 term at Bellevue College.

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Solutions Chapt 8 - The Employer's Tax Responsibilities:...

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