Question

5-2B
Yengling Company's payroll for the year is $593,150. Of this amount, $211,630 is for wages paid in excess of $7,000 to each individua employee. The SUTA rate in Yengling Company's state is 2.9% on the first $7,000 of each employee's earnings. Computer:

Net FUTA tax $
Net SUTA tax $
Total unemployment $

5-4B
Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:

1. Under SUTA for New Mexico on taxable payroll of $28,000; the contribution rate is 3.9%
2. Under SUTA for Colorado on taxable payroll of $23,000; the contribution rate is 2.95%
3. Under SUTA for Utah on taxable payroll of $65,000; the contribution rate is 4.1%
4. Under FUTA , the taxable payroll is $94,500.

SUTA taxes paid to New Mexico $
SUTA taxes paid to Colorado $
SUTA taxes paid to Utah $
FUTA taxes paid $

5-6B
In September 2015, Painter Wax Corporation began operation in a state that requires new employers of one or more individuals to pay a state unemployment tax of 4.1% of the first $7,000 of wages paid each employee.
An analysis of the company's paroll for the year shows total wages paid of $212,640. The alaries of the president and the vice president of the company were $25,000 and $15,000 respectively, for the four-month period, but there were no other employees who received wages in excess of $7,000 for the fourth months. Included in the total wages were $900 paid to a director who only attended director meetings during the year, $6,300 paid to the factory superintendent, and $2,000 in employee contributions to a cafeteria plan made on a pretax basis -- for both federal and state.
in addition to the total wages of $212,640; a payment of $2,000 was made to Andersen Accounting Company for an audit it performed on the company's books in December 2015 Computer:

Net FUTA tax
SUTA tax

5-9B
The partnership of Cox and Cohen paid the following wages during this year:

Cox (partner) $45.000
Cohen (partner) $26.000
Tate (supervisor) $14.350
Gerenski (factory worker) $9.900
Sobowski (factory worker) $9.450
Brunder (factor worker) $8.910
Carsoni(bookkeeper) $11.100
Chu(maintenance) $3.900

In addition, the partnership owed $200 to Chu for work her performed during December. However, the payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Computer:

Net FUTA tax for the partnership for this year
SUTA tax for this year

5-10B
Roofling Company paid wages of $319,600 this year. Of this amount, $193,900 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 4.3% for Roofling Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute:

a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions
b. Amount that Roofling Company would pay to the federal government for its FUTA tax
c. Amount that the company lost because of its late payments

5-13B
As of June 30, 2014 (the computation date for the 2015 tax rate) Amanda Company had a negative balance of $1,015 in its unemployment reserve account in State A. The company's average payroll over the last three 12-month periods amounted to $525,000. The unemployment compensation law of State A provides that the tax rate of an employer who has a negative balance on the computation date shall be 7.2% during the following calendar year. Using the tax rate schedule presented in Problem 5-12B, compute:

a. The smallest voluntary contribution that Amanda Company should make in order to effect a change in its tax rate
b. The amount of the tax savings as a result of the voluntary contribution if Amanda Company's taxable payroll for 2015 is $650,000

THE TAX RATE SCHEDULE PRESENTED IN PROBLEM 5-12B IS AS FOLLOWS:

Reserve Ratio Contribution Rate

0.0% or more, but less than 1.0% 6,70%
1.0% or more, but less than 1.2% 6,40%
1.2% or more, but less than 1.4% 6,10%
1.4% or more, but less than 1.6% 5,80%
1.6% or more, but less than 1.8% 5,50%
1.8% or more, but less than 2.0% 5,20%
2.0% or more, but less than 2.2% 4,90%
2.2% or more, but less than 2.4% 4,60%
2.4% or more, but less than 2.6% 4,30%
2.6% or more, but less than 2.8% 4,00%
2.8% or more, but less than 3.0% 3,70%
3.0% or more, but less than 3.2% 3,40%
3.2% or more 3,10%

5-16B
As the accountant for Monroe Trucking Company, you are preparing the company's annual return, Form 940 and Shedule A. Use the following information to complete Form 940 and Schedule A on page 5-50.
The net FUTA tax liability for each quarter of 2015 was as follows: 1st, $97.00; 2nd, $87.00; 3rd, $69.70; and 4th, $59.50
Since the net FUTA tax liability did not exceed $500, the company was not required to make its first deposit of FUTA taxes until February 1, 2016. Assume that the electronic payment was made on time.

a. One of the emloyees performs all of his duties in another state- Louisiana
b. Total payments made to employees during calendar year 2015: Texas $53,450 plus Louisiana $22,150 = Total $75,600
c. Employer contributions into employees' 401(k) retirement plan: $1,250
d. Payments made to employees in excess of $7,000: $22,150
e. Form is to be signed by Vernon Scott, Vice President
f. Phone number 834-555-5551

Form 940 for 20--

Part 1
1a. If you had to pay state unemployment tax in one state only, enter the state abbreviation
1b. If you had to pay state unemployment tax in more than one state, you are a multi-state employer check here

2. If you paid wages in a state that is subject to CREDIT REDUCTION check here

Part 2
3. Total payments to all employees $
4. Payments exempt from FUTA tax $
check all that apply 4a Fringe benefits 4c Retirement
4b Group-term life insurance 4d Dependent care

5. Total of payments made to each employee in excess of $7,000 $
6. Subtotal (line4+line5=line6) $
7. Total taxable FUTA wages (line3 - line 6 = line7) $
8 FUTA tax before adjustment (line7 * 0.006=line 8) $

Part 3
9. If ALL of the taxable FUTA wages you paid were excluded frm state unemployment tax, multiply line 7 by 0.054 , go to line 12 $
10. If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax, OR you paid ANY state unemployment tax late, complete the worksheet in the instruction. Enter the amount from line 7 of the worksheet
10. $

11. If credit reduction applies, enter the total from Schedule A form 940 $

Part 4
12. Total FUTA tax after adjustments (lines 8+9+10+11=line 12) $
13. FUTA tax deposited for the year, including any overpayment applied from a prior year $
14. Balance Due (if line 12 is more than line13, enter the excess on line14 $
If line 14 is more than $500, you must deposit your tax
If line 14 is $500 or less, you may pay with this return

15. Overpayment (if line 13 is more than line 12, enter the excess on line 15 and check a box below $
Apply to next return or Send a refund

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