Payroll Accounting

Title: Payroll Accounting
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5–2A. Earnings subject to FUTA and SUTA:
$737,910 – $472,120 = $265,790

(a) Net FUTA tax $265,790 × 0.008 = $2126.32
(b) Net SUTA tax $265790 × 0.0029 =$7707.91
(c) Total unemployment taxes ……. = $9834.23

5–4A. (a) SUTA taxes paid to Vermont $18,000 × 0.04 = $720
(b) SUTA taxes paid to New Hampshire $24,000 × 0.0265 =$636
(c) SUTA taxes paid to Maine $79,000× 0.029 =$2291
(d) FUTA taxes paid $103,500 × 0.008 =$828

5–6A. (a) FUTA taxable wages:
Total wages $ 177,610
Less: Director’s salary (900)
Less: Nontaxable portion of president’s and vice
president’s salaries (21,000)
Less: Pretax cafeteria plan contributions       (2,000)
Taxable wages $ 153,710

Net FUTA tax: $153,710 × 0.006 $ 922.26

(b) SUTA taxable wages:
Total wages $ 177,610
Less: Director’s salary (900)
Less: Nontaxable portion of president’s and vice
president’s salaries [($20,000 – $7,000) + ($15,000
– $7,000)] (21,000)
Less: Pretax cafeteria plan contributions       (2000)
Taxable wages $ 153,710

SUTA tax: $153,710 × 0.035 $5,379.85

5–8A. (a) FUTA tax $7,000 × 0.008 = $ 56.00
SUTA tax $22,000 × 0.046 = 1,012.00
Total = $1,068.00

(b) FUTA tax $7,000 × 0.008 = $ 56.00
SUTA tax $7,900 × 0.046 = 363.40
Total = $419.40

5–10A. (a) $114,000 × 0.031 × 90% $3,180.60
$114,000 × 0.023 (additional credit to 5.4%) 2,266.00
Total FUTA tax credit $5,742.60

(b) $114,000 × 0.060 $ 6,840.00
Less: Credit against tax [see (a) above] (5,742.60)
Net FUTA tax $ 1,097.40

(c) Net FUTA tax $1,097.40
FUTA tax without penalty: $114,000 × 0.006 684.00
Penalty $ 1,781.4

5–12A. (a) $17,440 ÷ $850,000 = 2.05%
(b) 4.9%
(c) Balance needed to qualify for 4.6% rate: $850,000 × 0.022 = $...