Private academic institutions and other special domestic businesses are exempt from the MCIT as long as they pay a preferential payroll tax of 10%. True or False
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Private academic institutions and other special domestic businesses are exempt from the MCIT as long as they pay a preferential payroll tax of 10%.
True or False.
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- Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.An employer, because of a favorable experience rating, is permitted to pay a state contribution at a reduced rate of 1.5 percent. What percentage of taxable wages must be paid in the aggregate to the federal and state governments?How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
- For 2018, the Social Security portion of the FICA tax is imposed at a rate of (not including any additional tax for high-income earners): a.6.2 percent for the employee and 7.65 percent for the employer. b.6.2 percent for only the employer. c.6.2 percent for the employee and 6.2 percent for the employer. d.6.2 percent for only the employee. e.None of these choices are correct.The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. In the Totals row, complete the following: Net FUTA tax. Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%.) SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employee’s earnings. Note : Round your final answers to nearest cent. I need help in calculating the FUTA and the SUTA in step by step solutions. KIPLEY COMPANY, INC.Taxable EarningsPayroll Taxes Earnings OASDI HI FUTA SUTA Totals $fill in the blank 5e50fe031fd1002_1 $467.75 $109.40 $fill in the blank 5e50fe031fd1002_2…For many years preceding 2018, Minimis Corporation, a calendar year corporation, had incurred the alternative minimum tax (AMT) and as a result had a $2 million minimum tax carryover into 2018. However, the Tax Cuts and Jobs Act of 2017 repealed the corporate AMT for tax years beginning after 2017. Minimis expects its regular tax liability to be $100,000 per year for 2018, 2019, 2020, and 2021. Your supervisor has asked you to determine how Minimis treats the minimum tax credit carryover in these four years now that the corporate AMT has been repealed. Your supervisor has suggested that you start by looking at IRC Sec. 53.
- Federal withholding taxes and social security taxes are normally paid __________. once a year by the employer quarterly by the employer once a year by the employee monthly by the employerA taxpayer operating a small business applied for and received the Main Street Small Business Tax Credit from the CDTFA. During the year, they increased their net employee count for full-time equivalent (FTE) employees to 102 over their average monthly FTE values. What is the amount of the credit that they can claim on their return for this massive employee increase? (Do not consider how much can be used, only how much they are eligible for given the circumstances. None of the employee wages are used in the consideration of any other credits.Since the SUTA rates changes are made at the end of each year, the available 2021 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-11 To illustrate the tax saving that may be realized as a result of making voluntary contributions, consider the following case of Krane Company, which is subject to the unemployment compensation law of a state that uses the reserve-ratio formula to determine experience ratings. The following contribution rate schedule applies for 2023: Reserve Ratio Rate 0% to less than 1% 6.2% 1% to less than 1.4% 5.6% 1.4% to less than 1.8% 5.0% 1.8% to less than 2.2% 4.4% 2.2% to less than 2.6% 3.8% 2.6% to less than 3.0% 3.2% 3.0% and over 2.6% For the three 12-month periods ending on June 30, 2022, the company had an average annual taxable payroll of $330,000. This is the base that the state uses as the average payroll. As of June 30, 2022, the credits to…
