Peroni Company paid wages of $178,000 this year. Of this amount, $128,200 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent. a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions$ b. Amount that Peroni Company would pay to the federal government for its FUTA tax$ c. Amount that the company lost because of its late payments$ Feedback a. (Taxable wages x SUTA rate x 90%) + [Taxable wages x (5.4% -SUTA rate)] = Total FUTA tax creditb. (Taxable wages x Gross FUTA rate) – Total FUTA tax credit (part a above) = Net FUTA taxc. Net FUTA tax (part b above) – FUTA tax without penalty = penalty
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Peroni Company paid wages of $178,000 this year. Of this amount, $128,200 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.
a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions
$b. Amount that Peroni Company would pay to the federal government for its FUTA tax
$c. Amount that the company lost because of its late payments
$Feedbacka. (Taxable wages x SUTA rate x 90%) + [Taxable wages x (5.4% -SUTA rate)] = Total FUTA tax credit
b. (Taxable wages x Gross FUTA rate) – Total FUTA tax credit (part a above) = Net FUTA tax
c. Net FUTA tax (part b above) – FUTA tax without penalty = penalty
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