Explanation 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. Following are the two situations in which an employer will be liable for a net FUTA tax greater than 0.6 percent: Employer is liable for a net FUTA tax greater than 0.6 percent when few states in a country exclude the tax imposed on the different types of wages from state unemployment tax even though they are subject to FUTA tax (certain fringe benefits , sick payments made to unions)...

19th Edition

ISBN: 9781337619783

Author: BIEG

Publisher: CENGAGE L

See similar textbooks

Question

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

Chapter 5, Problem 9QR

To determine

Provide the two situations in which an employer will be liable for a net FUTA tax greater than 0.6 percent.

Expert Solution & Answer

Chapter 5 Solutions

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

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

Ch. 5 - Prob. 7QR Ch. 5 - An employer, because of a favorable experience...Ch. 5 - Prob. 9QR Ch. 5 - Prob. 10QR Ch. 5 - Prob. 11QR Ch. 5 - Prob. 12QR Ch. 5 - Prob. 13QR Ch. 5 - Prob. 14QR Ch. 5 - Prob. 15QR Ch. 5 - Prob. 16QR Ch. 5 - Prob. 17QR Ch. 5 - Prob. 18QR Ch. 5 - Prob. 19QR Ch. 5 - Prob. 20QR Ch. 5 - Can the owner of a small business receive...Ch. 5 - Prob. 2QD Ch. 5 - Prob. 4QD Ch. 5 - Prob. 1PA Ch. 5 - Peyton Companys payroll for the year is 737,910....Ch. 5 - Prob. 3PA Ch. 5 - Prob. 4PA Ch. 5 - Prob. 5PA Ch. 5 - Prob. 6PA Ch. 5 - Prob. 7PA Ch. 5 - Prob. 8PA Ch. 5 - Prob. 9PA Ch. 5 - Prob. 10PA Ch. 5 - Prob. 11PA Ch. 5 - Prob. 12PA Ch. 5 - Prob. 13PA Ch. 5 - Prob. 14PA Ch. 5 - Prob. 15PA Ch. 5 - Prob. 16PA Ch. 5 - Prob. 17PA Ch. 5 - Prob. 1PB Ch. 5 - Prob. 2PB Ch. 5 - Prob. 3PB Ch. 5 - Prob. 4PB Ch. 5 - Prob. 5PB Ch. 5 - Prob. 6PB Ch. 5 - Prob. 7PB Ch. 5 - During 2019, Jake Gore worked for two different...Ch. 5 - Prob. 9PB Ch. 5 - Prob. 10PB Ch. 5 - Prob. 11PB Ch. 5 - Prob. 12PB Ch. 5 - Prob. 13PB Ch. 5 - Prob. 14PB Ch. 5 - Prob. 15PB Ch. 5 - Prob. 16PB Ch. 5 - Prob. 17PB Ch. 5 - Prob. 1CP

Knowledge Booster

Similar questions

Recommended textbooks for you

PAYROLL ACCT., 2019 ED.(LL)-TEXT
Accounting
ISBN:9781337619783
Author:BIEG
Publisher:CENGAGE L
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
SWFT Corp Partner Estates Trusts
Accounting
ISBN:9780357161548
Author:Raabe
Publisher:Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub