Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. John Gercke is an employee of The Woolson Company. During the first part of the year, he earned $6,800 while working in State A. For the remainder of the year, the company transferred him to State B where he earned $16,500. The Woolson Company's tax rate in State A is 4.2%, and in State B it is 3.15% on the first $7,000. Assuming that reciprocal arrangements exist between the two states, determine the SUTA tax that the company paid to: State A State B
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. John Gercke is an employee of The Woolson Company. During the first part of the year, he earned $6,800 while working in State A. For the remainder of the year, the company transferred him to State B where he earned $16,500. The Woolson Company's tax rate in State A is 4.2%, and in State B it is 3.15% on the first $7,000. Assuming that reciprocal arrangements exist between the two states, determine the SUTA tax that the company paid to: State A State B
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable
wages.
John Gercke is an employee of The Woolson Company. During the
first part of the year, he earned $6,800 while working in State A. For
the remainder of the year, the company transferred him to State B
where he earned $16,500. The Woolson Company's tax rate in
State A is 4.2%, and in State B it is 3.15% on the first $7,000.
Assuming that reciprocal arrangements exist between the two
states, determine the SUTA tax that the company paid to:
State A
State B
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