Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Question

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Answer 1

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 2

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 3

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 4

Question

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

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Answer 5

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

Answer 6

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

Answer 7

Chapter 5, Problem 1SSQ

To determine

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Answer 8

Expert Solution & Answer

Explanation of Solution

Federal unemployment tax act (FUTA): This is the act that enables the federal government to provide compensation to the unemployed people from the taxes collected from the employers, as a percentage of 6.0% on the first $7,000 of employees’ earnings. Federal government refunds the employers with 5.4% on FUTA, if the employers have paid SUTA.

So, FUTA would be reduced to 0.6% for those employers.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Particulars	Amount in $	Amount in $
Gross FUTA of 6.0% on $188,000		11,280
Less: Credit the SUTA tax of 4.1% paid for $188,000	7,708
Additional credit of 1.3% (1) to get 5.4% on $188,000	2,444
Total credit		10,152
Net FUTA of 0.6% on $188,000.		1,128

(Table 1)

Working Note1: Calculate the percentage of additional credit to be received for 5.4%.

Percent of additional credit =(Actual SUTA tax rate)−( Company SUTA tax rate) =5.4%−4.1%=1.3%

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 5 - Prob. 1SSQ Ch. 5 - Prob. 2SSQ Ch. 5 - Prob. 3SSQ Ch. 5 - _____ 1. Reciprocal arrangements A. Extra state...Ch. 5 - What two alternative tests are applied to a...Ch. 5 - What condition would make a household employer a...Ch. 5 - Prob. 3QR Ch. 5 - Prob. 4QR Ch. 5 - Prob. 5QR Ch. 5 - Prob. 6QR

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Calculate the Company G’s FUTA and SUTA tax for the year 2019.

Explanation of Solution

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