help 10A LO 3, 4 Similar to Example 5-5 on page 5-11 L03,4 L Company paid wages

Question

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10A LO 3, 4 Similar to Example 5-5 on page 5-11 L03,4 L Company paid wages of $170,900 this year. Of this amount, $114,000 was ta or net FUTA and SUTA or Peroni Company. Due to cash flow problems, the company did Perom urpose s. The state's contribution tax rate is 3.1% f plu not make any SUTA payments until after the Form 940 filing date. Computes ount of credit the company would receive against the FUTA tax for its SUTA b. Amount that Peroni Company would pay to the federal government for its FUTA tax.. a. contributions. c. Amount that the company lost because of its late payment.. Similar to Example 5-7 on page 5-14 2017, Jordan Company was subject to the Alaska state unermployment tax of 4.2%. The company's taxable wages for FUTA were $86,700 and for SUTA, $171,000. Compute: a. SUTA tax that Jordan Company would pay to the state of Alaska.. b. Net FUTA tax for 201.. Amount of employees' unemployment tax for 2017 (use the employee's tax rate shown in Figure 5.1 on page 5-12).

Explanation / Answer

10A>

Part A. Maximum credit allowed 5.4%. Hence paid 3.1%, so credit allowed will of 3.1% i.e. 3,534.

Part B. For FUTA company needs to pay max of 6% of the taxable amount and reduced by SUTA taxes if any paid i.e. 114,000*(6-3.1)% = 3,306

Part C. As SUTA payments are not made on time company will losses it credit for SUTA payment i.e. 3,534..

Question 11A.

PArt A. 171,000*4.2% = 7,182.

Part B. 86,700 * (6-4.2)% = 1,561

Part C. Incomplete information

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