Using the Internet for research, when was the last time the FUTA rate was changed and what was the impact on employers? Taking the 5.4% credit reduction, what was the effective tax rate before and after for employers? What was the maximum amount of tax for each employee before and after the tax rate change? In your opinion and using the internet for research, do you believe that the FUTA tax rates for the FUTA tax credit will be changed in the near future? Explain your answer.

Using the Internet for research, when was the last time the FUTA rate was changed and what was the impact on employers? Taking the 5.4% credit reduction, what was the effective tax rate before and after for employers? What was the maximum amount of tax for each employee before and after the tax rate change? In your opinion and using the internet for research, do you believe that the FUTA tax rates for the FUTA tax credit will be changed in the near future? Explain your answer.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 16MCQ

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when was the last time the FUTA rate was changed and what was the impact on employers? Taking the 5.4% credit reduction, what was the effective tax rate before and after for employers? What was the maximum amount of tax for each employee before and after the tax rate change? In your opinion and using the internet for research, do you believe that the FUTA tax rates for the FUTA tax credit will be changed in the near future?
Evaluate the ethical issues related to the payment of income taxes. in other words, if there is a legal tax-saving strategy available to a person who earns $50,000 per year, will it be ethical for the person to utilize this strategy in order to pay less tax? State how your answer to the previous question would change if the person were making $1,500,000.
Evaluate the three strategies reducing income, increasing deductions, and taking advantage of tax credits that you listed based on their overall effect on a person's tax situation (the amount of income taxes that the person will have to pay). Evaluate the ethical issues related to the payment of income taxes. in other words, if there is a legal tax-saving strategy available to a person who earns $50,000 per year, will it be ethical for the person to utilize this strategy in order to pay less tax? State how your answer to the previous question would change if the person were making $1,500,000.
Which statement is NOT true about the structure of the Earned Income Tax Credit (EITC)? A. EITC payments decrease as earnings increase, but everyone qualifies for some amount. B. At a particular range of income, government reduces EITC payments based on a certain fixed percent of income earned. C. EITC pays a fixed amount at a range of income. D. Up to a threshold, EITC pays a certain fixed percent of wage earned.
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0". a. The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee must be within 10 years of retirement, and the cost of the seminar is $1,500 per attendee. $fill in the blank 1 b. The company owns a parking garage that is used by customers, employees, and the general public, but primarily by the employees. Only the general public is required to pay for parking. The charge to the general public for Polly's parking for the year would have been $3,600 (a $300 monthly rate). $fill in the blank 2 c. All employees are allowed to use the company's fixed charge long-distance telephone…
Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not self-employed and earns $137,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $118,500 of income 1.45% of income in excess of $118,500 7.65% on first $118,500 paid in wages 1.45% of wages paid in excess of $118,500 15.3% on first $118,500 of net profits 2.9% of net profits in excess of $118,500 FICA taxes are ?$
1. What self-employment tax rate is applied to earnings that exceed $142,800 in a year and also do NOT exceed the additional Medicare tax threshold? Answer: A. 15.3% B. 12.4% C. 2.9% D. 1.45% 2. What is the standard credit applied to the FUTA tax rate in non-credit reduction states? Answer: A. 0.6% B. 0.9% C. 5.4% D. 6% 3. An employer in a non-credit reduction state would pay FUTA taxes of _____ for an employee whose year-to-date earnings prior to the current period are $7,200 and who earns $1,100 during the current period. Answer: A. $0 B. $6.60 C. $43.20 D. $49.80
I'm having trouble with the following question. "Given the following, calculatge the state (assume 5.3%) and federal unemployment taxes that the employer must pay for each of the first two quarters. The federal unemployment tax is 0.6% on the first $7,000. Both state and federal unemployment taxes apply to the first $7,000 only. (Round your answers to the nearest cent)." I got the first quarter right and although I did the same thing to the second quarter, it was incorrect. I need help. Quarter 1 Quarter 2 Bill Adams $4,000 $8000 Rich Haines $8,000 $14,000 Alice Smooth $3,200 $3,800 First Quarter Second Quarter Total $14,200 Total $17,800 SUTA $752.60 SUTA $943.40 FUTA $85.20 FUTA $106.80
1. An employee earns 35,000 a month. He receives his salary every 15th and 30th of the month. His conrtibutions and tax is being deducted fairly every cut-off. A. How much is his gross earnings per cut-off? B. How much is his withholding tax per cut-off? C. Compute for his SSS, Philhealth, and PagIBIG every cut off. D. How much is his net earnings every cut-off?
The manager of Sheffield is given a bonus based on net income before taxes. The net income after taxes is $63300 for FIFO and $52100 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO? $16000 $22400 $3200 $11200
You have just accepted your first full-time job as assistant manager. You will be earning a salary of $625 per week. That sounds like a lot of money, but you know there will be deductions from your paycheck, such as federal income tax, Social Security tax, and medical insurance. Let’s find out how much you will actually make. 1 You are single and claim no allowances. How much .is deducted from your weekly paycheck for federal income taxes? 2.Your state tax income rate is 4.2% on all gross income. How much is deducted from your weekly paycheck for state income taxes? 3.Your local tax rate is 2.1% on all gross income. How much is deducted from your weekly paycheck for local tax? .4.Social security tax is deducted at the standard rate of 6.2%. How much will you pay into Social Security each week? 5..Medicare is deducted at the standard rate of 1.45% on all earnings. How much will your pay into Medicare each week? 6..You know it’s a good idea to have medical insurance.…
A taxpayer spends well over $50 each month on public transit, and the taxpayer’s employer is implementing a new policy that gives each employee a $50 transit pass each month. However, to alleviate the cost of the new “perk”, the employer plans to reduce the employee’s pretax salary by $1,000. Assuming the taxpayer’s marginal tax rate is 35%, is the taxpayer better off under the new policy? Hint: Also incorporate into your calculation that nontaxable fringe benefits are not subject to FICA taxes whereas salary is. $50*12 = $600 after-tax $1000 * (1 – 35% - 7.65%) = $573.50 after-taxYes, the taxpayer/employee is better off. Where does 7.65% come from?? Is there anybody who can explain this?