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The federal unemployment surtax of 0.2 percent exp...

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The federal unemployment surtax of 0.2 percent expired on June 30, 2011. Because of the probability that the surtax will be reinstated, the authors, for this edition, have assumed in the end-of-chapter problems that the surtax will be reinstated, resulting in a gross FUTA tax of 6.2% and a net tax of 0.8%. 5-2A LO 3,4. 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. 5-4A LO 3,4. 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%. 2. Under SUTA for Iowa on taxable payroll of $24,000, the contribution rate is 2.65%. 3. Under SUTA for Ohio on taxable payroll of $79,000, the contribution rate is 2.9%. 4. Under FUTA, the taxable payroll is $103,500. 5-14A LO 2,3,4. Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker). . $1,700 per month A. Drugan (saleswoman) . . . . . . . . . . $15,000 per year G. Beiter (stock clerk) . . . . . . . . . . . . $180 per week S. Egan (deliveryman) . . . . . . . . . . . . $220 per week B. Lin (cleaning and maintenance, part-time). . . . . . . . . . . . . . . . . . . . $160 per week Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 12, 2012:

 

Paper#6084 | Written in 18-Jul-2015

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