AC122_Finley_Joey_Unit_6

AC122_Finley_Joey_Unit_6 - Running head UNEMPLOYMENT...

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Unformatted text preview: Running head: UNEMPLOYMENT COMPENSATION TAXES 1 Unemployment Compensation Taxes Joey Finley Kaplan University Payroll Accounting AC122 Carla Blake June 28, 2011 Unemployment Compensation Taxes (1) Practical Problem 5-2A (pg 5-31) Peyton Company’s payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company’s state is 2.9% on the first $7,000 of each employee’s earnings. Compute: $737,910 - $472,120 = $265,790 taxable earnings. (a) Net FUTA tax........ $265,790 x .8% (.008) ...............=$2,126.32 (b) Net SUTA tax......... $265,790 x 2.9% (.029) .............=$7,707.91 (c) Total unemployment taxes... FUTA + SUTA.........=$9,834.23 (2) Practical Problem 5-4A (pg 5-31) Due to its experience rating, Ianelli, Inc. is required to pay unemployment taxes on its payroll as follows: 1. Under SUTA for Illinois on taxable payroll of $18,000, the contribution rate is 4%....
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AC122_Finley_Joey_Unit_6 - Running head UNEMPLOYMENT...

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