# Chapter 5 Template

Topics: Payroll tax, Taxation, Taxation in the United States Pages: 2 (582 words) Published: October 17, 2012
5-1A.
During the year, Plum Company has a SUTA tax rate of 4.8%.
The taxable payroll for the year for FUTA and SUTA is
\$123,400. Compute:
a. Net FUTA tax ............................................... \$ 987.20 b. Net SUTA tax ............................................... \$ 5,923.20 c. Total unemployment taxes ............................ \$ 6,910.40 5-2A.

Peyton Company’s payroll for the year is \$737,910. Of this amount, \$472,120 is for wages paid in excess of \$7,000 to each individual employee. The SUTA rate in Peyton Company’s
state is 2.9% on the first \$7,000 of each employee’s earnings. Compute:
a. Net FUTA tax ............................................... \$ 2,126.32 b. Net SUTA tax ............................................... \$ 7,707.91 c. Total unemployment taxes ............................ \$ 9,834.23 5-3A.

Garrison Shops had a SUTA tax rate of 3.7%. The state’s tax- able limit was \$8,000 of each employee’s earnings. For the year, Garrison Shops had FUTA taxable wages of \$67,900 and SUTA
taxable wages of \$83,900. Compute:
a. Net FUTA tax ............................................... \$ 543.20 b. Net SUTA tax ............................................... \$ 3,104.30

5-4A.
Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:
1. Under SUTA for Illinois on taxable payroll of \$18,000, the con- tribution rate is 4%.
2. Under SUTA for Indiana on taxable payroll of \$24,000, the con- tribution rate is 2.65%.
3. Under SUTA for Ohio on taxable payroll of \$79,000, the contri- bution rate is 2.9%.
4. Under FUTA, the taxable payroll is \$103,500.
Compute:
a. SUTA taxes paid to Illinois ............................ \$ 720 b. SUTA taxes paid to Indiana .......................... \$ 636 c. SUTA taxes paid to Ohio .............................. \$ 2291 d. FUTA taxes paid ........................................... \$ 828 5-5A.

Donner Company began its operations in...