Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows: Under SUTA for Massachusetts on taxable payroll of $17,100, the contribution rate is 4%. Under SUTA for New Hampshire on taxable payroll of $27,000, the contribution rate is 6.65%. Under SUTA for Maine on taxable payroll of $75,200, the contribution rate is 2.9%. Under FUTA, the taxable payroll is $104,000. Compute the following; round your answers to the nearest cent. a.  SUTA taxes paid to Massachusetts $fill in the blank 1 b.  SUTA taxes paid to New Hampshire $fill in the blank 2 c.  SUTA taxes paid to Maine $fill in the blank 3 d.  FUTA taxes paid $fill in the blank 4

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter5: Unemployment Compensation Taxes
Section: Chapter Questions
Problem 17PB
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Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.

 

Example 5-7

Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are:

FUTA tax – $130,000 × 0.6% = $780
SUTA tax – $210,000 × 0.9% = 1,890
Total unemployment taxes   $2,670

Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:

  1. Under SUTA for Massachusetts on taxable payroll of $17,100, the contribution rate is 4%.
  2. Under SUTA for New Hampshire on taxable payroll of $27,000, the contribution rate is 6.65%.
  3. Under SUTA for Maine on taxable payroll of $75,200, the contribution rate is 2.9%.
  4. Under FUTA, the taxable payroll is $104,000.

Compute the following; round your answers to the nearest cent.

a.  SUTA taxes paid to Massachusetts $fill in the blank 1
b.  SUTA taxes paid to New Hampshire $fill in the blank 2
c.  SUTA taxes paid to Maine $fill in the blank 3
d.  FUTA taxes paid $fill in the blank 4
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