PROBLEM: Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​Sparks Company's SUTA rate for next year is 3.25% because its reserve ratio falls into the state's 10% to less than 12% category [(contributions - benefits paid) ÷ average payroll = $414,867 ÷ $3,521,790 = 11.78%]. If the next bracket (12% to less than 14%) would give the company a lower tax rate of 3.05%, what would be the least amount of the voluntary contribution needed to qualify the company for the 3.05% SUTA tax rate?

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Q: Sparks Company's SUTA rate for next year is 3.25% because its reserve ratio falls into the state's…

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A:

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A:

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A: Let, Bonus = X Bonus = (Income before bonus and tax - Bonus) x 10%

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A:

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A: Let, Income before bonus and tax = X so, Income after tax = (X - bonus) x (1 - tax rate)

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A: Tax refers to compulsory payment made to government of country. In order to earn in country,…

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A: Bonus is the additional amount or compensation which is paid to the employees for additional work…

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