Slarson_Week06PracticalProblems_051913

Slarson_Week06PracticalProblems_051913 - Sarah Larson 52A...

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Sarah Larson 5–2A. Earnings subject to FUTA and SUTA: $737910 – $472120 = $265790 (a) Net FUTA tax ........................................... $265790 × 0.029 = $7707.91 (b) Net SUTA tax ........................................... $265790 × 0.008 = $2126.32 (c) Total unemployment taxes .................................................. $9834.23 5–4A. (a) SUTA taxes paid to Vermont .................... $18000 × 0.04 = $720.00 (b) SUTA taxes paid to New Hampshire ....... $24000 × 0.0265 = $636.00 (c) SUTA taxes paid to Maine ....................... $79000 × 0.029 = $2291.00 (d) FUTA taxes paid .................................... $103500 × 0.008 = $828.00 5–6A. (a) FUTA taxable wages: Total wages ......................................................................... $ 177610 Less: Director’s salary ........................................................ (900) Less: Nontaxable portion of president’s and vice president’s salaries .................................................. (21000) Less: Pretax cafeteria plan contributions ............................ (2000 ) Taxable wages .................................................................... $ 153710 Net FUTA tax: $153,710 × 0.006 ........................................ $ 922.26 (b) SUTA taxable wages: Total wages ......................................................................... $ 177610 Less: Director’s salary ........................................................ (900) Less: Nontaxable portion of president’s and vice president’s salaries [($20,000 – $7,000) + ($15,000 – $7,000)] ................................................................ (21000) Less: Pretax cafeteria plan contributions ............................ (2000 ) Taxable wages .................................................................... $ 153710 SUTA tax: $153,710 × 0.035 ............................................... $5379.85
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5–8A. (a) FUTA tax ......................................................... $22000 × 0.014 = $308.00 SUTA tax ......................................................... $22000 × 0.046 = 1012.00 Total = $1320.00 (b) FUTA tax ......................................................... $29500 × 0.014 = $413.00 SUTA tax ......................................................... $29500 × 0.051 = 1504.50 Total =$1917.50 5–10A. (a) $114,000 × 0.031 × 90% ..................................................... $3180.60 $114,000 × 0.023 (additional credit to 5.4%) ...................... 2622.00 Total FUTA tax credit ........................................................... $5802.60 (b) $114,000 × 0.060 ................................................................ $ 6840.00 Less: Credit against tax [see (a) above] ............................. (2622.00 ) Net FUTA tax ....................................................................... $ 4218.00 (c)
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  • Winter '14
  • Taxes, Taxation in the United States, ........., FUTA

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