1: A-1 Framing employs three workers who, as of the beginning of the current pay period, have earned $8,550, $8,200, and $7,400. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $1,000, $1,350, and $1,800, respectively. SUTA tax = $ 8,500.00
1: A-1 Framing employs three workers who, as of the beginning of the current pay period, have earned $8,550, $8,200, and $7,400. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $1,000, $1,350, and $1,800, respectively. SUTA tax = $ 8,500.00
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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Transcribed Image Text:2. Two employees have earned taxable pay of $ 2,700 and $ 2,400
Both are within limits and 3.4%
Hence SUTA tax will be computed as follows,
SUTA Tax= (2,700+2,400) * 3.4%
SUTA Tax=$ 173.40
PSb 5-4 Calculate SUTA 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.
NO TE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1: A-1 Framing employs three workers who, as of the beginning of the current pay period, have earned $8,550, $8,200, and $7,400. Calculate SUTA tax for the current pay
period if these employees earn taxable pay of $1,000, $1,350, and $1,800, respectively.
SUTA tax = $
8,500.00
2: Mrs. Fix-It Corp. employs two workers who, as of the beginning of the current pay period, have earned $4.200 and $6,500. Calculate SUTA tax for the current pay period
if these employees eam taxable pay of $2,700 and $2,400, respectively.
SUTA tax = $
173.40
Transcribed Image Text:Since income is above $8500, it is $0
In case of employee 2
Least of
$1350 or $300 ($8500 -$8200)
= $300
In case of employee 3
Least of
$1800 or $900 ($8500 -$7400)
= $900
Under the provisions of SUTA
The maximum earnings subject to tax is $8500
Computation of taxable earnings
Taxable earnings subject to tax
Taxable earnings of first employee + taxable earnings of second employee + Taxable earnings of third
employee.
$0 + $300 + $900
$1200
In case of employee 1
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