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?

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?

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 11QR

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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.
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…
By how much would total payroll (compensation plus tax) increase in the previous question if the government imposed a new minimum wage of $15/hour and the managers’ wages increased by the same proportion as the servers’ wages?
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.
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
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. 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?
Note: Use the Tax Tables to calculate the answers to the problems listed. Determine the income tax to withhold from the biweekly wages of the following employees (wage-bracket): If your answer is zero, please enter "0". Karen Overton (single, 0 allowances), $900 wages $ Nancy Haller (married, 4 allowances), $1,000 wages $ Alan Glasgow (married, 1 allowance), $980 wages $ Joseph Kerr (single, 4 allowances), $720 wages $ Ginni Lorenz (single, 1 allowance), $580 wages $
Used the 2016 FICA tax rates from below to answer the following question. if a taxpayer is not self-employed and earns $121,000 what are the taxpayers FICA taxes?
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?