5-7A • LO 3, 4In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plantin Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% inMichigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Companypaid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute:See Example 5-1 on page 5-7a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages.b. Amount of SUTA tax the company must pay to Michigan on Porter's wages.c. Amount of the net FUTA tax on Porter's wages....2$2$

Solution: (a). Amount of SUTA tax to be paid to Nebraska = $2,800 x 3.2%…

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 32P

See similar textbooks

Similar questions

LO.5 Beige Corporation has a fiscal year ending April 30. For the year ending April 30, 2018, Beige generated taxable income of 1,200,000. What is Beige Corporations tax liability for this period?
AP#6_4 Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,300 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $137,700 FICA tax—HI 1.45% on total pay Federal income tax $195.00 per pay State income tax 22% of the federal income tax withholding Federal unemployment tax 0.6% on first $7,000 State unemployment tax 0.05% on first $14,000 Additional payroll deductions include: 401(k) plan 3% per pay Child support garnishment $105 per pay Health insurance premium $90 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $27,300). If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
Problem 12-24 (c) (LO. 3) Ambre Corporation hires eight individuals on April 2, 2019, all of whom qualify for the work opportunity tax credit. Five of the individuals receive wages of $8,600 during 2019, and each individual works 510 hours during the year. The other three individuals each work 300 hours, and each receives wages of $3,400 during the year. If Ambre pays total wages of $191,000 to its employees during the year, how much of this amount is deductible in 2019, assuming the work opportunity credit is taken? $_____________
The FICA Tax (LO 9.3) (COVID provisions) Lamden Company paid its employee Trudy, wages of $61,500 in 2020. Of this amount, $2,400 was allocated to sick pay for two weeks due to Trudy’s spouse contracting COVID and Trudy being quarantined. Trudy spent another 10 weeks at home caring for their children that were unable to attend school. Lamden allocated $10,000 in wages to family leave. Lamden allocated $6,000 of Trudy’s wages to the employee retention credit (5 weeks). The allocation of health care costs is $200 per week. Compute Lamden’s: Round your answers to two decimal places. 1. Credit for sick pay $ 2. Credit for family leave $ 3. Employee retention credit $
6-13A.LO2 In oregon, employers who are covered by the state workers' compensation law withhold employee contributions from the wages of covered employees for the worker's benefit fund at the rate of 1.4cents for each hour or part of an hour that the worker is employed.Evry covered employee is also assessed 1.4 cents per hour for each worker employed for each hour or part of an hour. The employer-employee contribution for workers' conpensation are collected monthly,quarterly,annually by the employer's insurance carrier,according to a schedule agreed upon by the employer and the carrier. The insurance carrier remits the contribution to the state's worker's compensation department. Cortez Company,a covered employer in Oregon, turns over the employer -employee workers' compensation contributions to its insurance carrier by the 15th of each month for the preceding month.During the month of July,the number of full-time employee-hours worked by the company's employees was 8,270;the number of…
Problem 8-68 (LO 8-3) (Algo) [The following information applies to the questions displayed below.] Eva received $64,000 in compensation payments from JAZZ Corporation during 2021. Eva incurred $6,500 in business expenses relating to her work for JAZZ Corporation JAZZ did not reimburse Eva for any of these expenses. Eva is single and deducts a standard deduction of $12,550. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference.(Leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar amount.) d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?
Exercise 7-19 (Algorithmic) (LO. 1) Last year, Aleshia identified $5,400 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Aleshia had $10,800 of taxable income, of which $3,780 consisted of short-term capital gains. This year, Aleshia collected $4,536 of the amount she had previously identified as a bad debt. Determine Aleshia's tax treatment of the $4,536 received in the current tax year. Aleshia includes $fill in the blank 1 of the collection as ordinary income .
6-7A.LO2,3 payroll accounting by Beig and Toland Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week. Additional tax information includes: FICA tax-OASDI...........6.2% on first $128,400 FICA tax-HI..........1.45% on total pay Federal income tax....$232.00 per pay SIT.....22%of the federal income tax withholding FUTA.....0.6% on first $7,000 SUTA.....0.05% on first 14,000 Additional payroll deductions include: 401k plan....3%per pay Child support garnishment......$100 Health insurance premium...$95 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500)
Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Refer to Instruction 5-1. Hunter Company had a FUTA taxable payroll of $192,700 for the year. Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans, determine Hunter’s FUTA tax liability for the year.
Exercise 13-37 (LO. 7) On June 5, 2020, Brown, Inc., a calendar year taxpayer, receives cash of $750,000 from the county upon condemnation of its warehouse building (adjusted basis of $500,000 and fair market value of $750,000). Complete the statements below regarding what must Brown do to qualify for § 1033 postponement if the adjusted basis was instead $795,000. Because Brown has a realized loss on the condemnation of business property, it is automatically recognized . In this case, §1033 does not modify the normal rules of recognition. Therefore, Brown has a realized loss of $fill in the blank of which $fill in the blank is recognized. Feedback
Problem 9-13----2019The FUTA Tax (LO 9.6) Thomas is an employer with two employees, Patty and Selma. Patty's wages are $12,450 and Selma's wages are $1,310. The state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas: Round your answer to two decimal places. a. FUTA tax before the state tax credit $ b. State unemployment tax $ c. FUTA tax after the state tax credit $
11. The Dot Corporation has changed its year-end from a calendar year-end to August 31. The income for its short period from January 1 to August 31 is $54,000. The tax for this short period is: a.$2,040 b.$8,667 c.$11,340 d.$6,250