PAYROLL CH5 ANSWERS - Chapter 5 51 SolutionsSeries A Problems 51A(a Net FUTA tax.$67,000 0.008 = $ 536.00(b Net SUTA tax.$67,000 0.059 = 3,953.00(c

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Unformatted text preview: Chapter 5 51 SolutionsSeries A Problems 51A. (a) Net FUTA tax ...........................................$67,000 0.008 = $ 536.00 (b) Net SUTA tax...........................................$67,000 0.059 = 3,953.00 (c) Total unemployment taxes................................................. $4,489.00 52A. Earnings subject to FUTA and SUTA: $737,910 $472,120 = $265,790 (a) Net FUTA tax..........................................$265,790 0.008 = $2,126.32 (b) Net SUTA tax.........................................$265,790 0.029 = 7,707.91 (c) Total unemployment taxes................................................. $9,834.23 53A. (a) Net FUTA tax............................................$67,900 0.008 = $ 543.20 (b) Net SUTA tax...........................................$83,900 0.037 = $3,104.30 54A. (a) SUTA taxes paid to Illinois.....................$18,000 0.04 = $ 720.00 (b) SUTA taxes paid to Indiana....................$24,000 0.0265 = $ 636.00 (c) SUTA taxes paid to Ohio........................$79,000 0.029 = $ 2,291.00 (d) FUTA taxes paid...................................$103,500 0.008 = $ 828.00 55A. (a) Yes. Boxon Company meets the test of having paid wages totaling more than $1,500 during any calendar quarter of the current year. (b) Taxable wages.......................................$6,950 + $12,910 = $19,860.00 Net FUTA tax............................................$19,860 0.008 = $ 158.88 56A. FUTA taxable wages: Total wages......................................................................... $ 177,610 Less: Directors salary........................................................ (900) Less: Nontaxable portion of presidents and vice presidents salaries.................................................. (21,000) Less: Pretax cafeteria plan contributions........................... (2,000 ) Taxable wages.................................................................... $ 153,710 (a) Net FUTA tax: $153,710 0.008........................................ $ 1,229.68 SUTA taxable wages: Total wages......................................................................... $ 177,610 Less: Directors salary........................................................ (900) Less: Nontaxable portion of presidents and vice presidents salaries.................................................. (21,000) Less: Pretax cafeteria plan contributions........................... (2,000 ) Taxable wages.................................................................... $ 153,710 52 Payroll Accounting (b) SUTA tax: $153,710 0.035.............................................. $5,379.85 57A. (a) $2,800 0.032 = $89.60 (b) $4,200 0.038 = $159.60 (c) $7,000 0.008 = $56.00 58A. (a) FUTA tax..........................................................$7,000 0.008 = $ 56.00 SUTA tax..........................................................$9,000 0.046 = 414.00 Total = $470.00$470....
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This note was uploaded on 06/24/2009 for the course ACCOUNTING AC122 taught by Professor Cocharan during the Spring '09 term at Kaplan University.

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PAYROLL CH5 ANSWERS - Chapter 5 51 SolutionsSeries A Problems 51A(a Net FUTA tax.$67,000 0.008 = $ 536.00(b Net SUTA tax.$67,000 0.059 = 3,953.00(c

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