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For each of the described pay periods, determine the taxable earnings subject to FUTA tax:

For each of the described pay periods, determine the taxable earnings subject to FUTA tax:

1.      A business employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,700, $8,000, and $1,000. During the current pay period, these employees earn $1,600, $3,460, and $2,400, respectively.


Taxable earnings subject to FUTA tax = $

2.      A business employs three individuals, whose taxable earnings to date (prior to the current pay period) are $26,700, $4,400, and $6,850. During the current pay period, these employees earn $2,570, $2,560, and $3,320, respectively.


Taxable earnings subject to FUTA tax = $

For each of the following independent circumstances, calculate the FUTA tax owed by the employer:


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


1: An employer in Albany, New York, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $8,100 and $6,200. During the current pay period, these employees earn $850 and $1,490, respectively.


FUTA tax = $

2: An employer in Bloomington, Illinois, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $51,500, $32,420, and $7,550. During the current pay period, these employees earn $1,770, $2,680, and $750, respectively.


FUTA tax = $

3: An employer in Los Angeles, California, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $920, and $5,150. During the current pay period, these employees earn $2,300 and $2,970, respectively.


FUTA tax = $

4: An employer in Essex, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $7,000, $6,100, and $9,400. During the current pay period, these employees earn $650, $980, and $1,100, respectively.


FUTA tax = $

For each of the following independent circumstances calculate the SUTA tax owed by the employer. Assume a SUTA tax rate of 3.4% and a taxable earnings threshold of $8,500.


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


1: Hometown Bakery employs three workers who, as of the beginning of the current pay period, have earned $16,200, $7,150, and $4,000. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $1,480, $1,980, and $1,020, respectively.


SUTA tax = $

2: Electronics Outlet employs two workers who, as of the beginning of the current pay period, have earned $8,400 and $7,200. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $3,350 and $2,450, respectively.


SUTA tax = $

3: Delivery Inc. employs 127 workers who, for the current pay period, earn total taxable pay of $347,540. Of this amount, only $31,400 are subject to SUTA tax, as this is the portion of individual employee earnings that does not exceed the $8,500 threshold. Calculate SUTA tax based on these earnings.


SUTA tax = $

For each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer:


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


1: An employer in The U.S. Virgin Islands employs two individuals, whose taxable earnings to date (prior to the current pay period) are $5,100 and $6,900. During the current pay period, these employees earn $1,750 and $2,750, respectively. The applicable SUTA tax rate is 1.5%, and the U.S. Virgin Islands SUTA threshold is $23,500.


FUTA tax = $

 

SUTA tax = $

2: An employer in Newark, New Jersey employs three individuals, whose taxable earnings to date (prior to the current pay period) are $26,200, $31,600, and $6,850. During the current pay period, these employees earn $3,600, $2,280, and $1,790, respectively. The applicable SUTA tax rate is 3.4%, and the New Jersey SUTA threshold is $33,500.


FUTA tax = $

 

SUTA tax = $

3: An employer in Cincinnatti, Ohio employs two individuals, whose taxable earnings to date (prior to the current pay period) are $4,900 and $7,700. During the current pay period, these employees earn $2,800 and $1,900, respectively. The applicable SUTA tax rate is 2.5%, and the Ohio SUTA threshold is $9,000.


FUTA tax = $

 

SUTA tax = $

4: An employer in Juneau, Alaska employs three individuals, whose taxable earnings to date (prior to the current pay period) are $35,600, $41,300, and $5,200. During the current pay period, these employees earn $3,700, $3,850, and $1,450, respectively. The applicable SUTA tax rate is 2.5%, and the Alaska SUTA threshold is $39,800.


FUTA tax = $

 

SUTA tax = $

Based on the following figures for the most recent pay period, record the necessary journal entry to account for employer payroll taxes as of 01/20/2017.


Chart of Accounts

Notes:

Enter the transaction date on the first line only (if multiple transactions are required, enter the date on the first line of each transaction). Enter all debits within the transaction prior to entering any credits. Omit journal entry explanations.

Use the Chart of Accounts provided to obtain the proper account names when recording the journal entries.

To earn any credit for a given line within the journal entry, the account name must be correct. Partial credit will be given for a correct account name with an incorrect amount, while full credit will be given for a correct account name with a correct amount.

Do not include journal entry explanation when submitting your answer.

Account Name Amount

Medicare Tax Payable   $31.90

State Unemployment Tax Payable          $74.80

Social Security Tax Payable        $136.40

Federal Unemployment Tax Payable      $13.20

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