Employee SUTA Contributions Some states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different than an employer's... taxable wages (those under the cap) times the state rate for employees. Let's investigate an individual that lives in New Jersey whose monthly wages equal $2,470 and whose earnings to date have not exceeded the New Jersey cap of $ Description Calculation 1. Looking at the chart, in the Employee column, it provides the employee withholding rate (0.705% in New Jersey) and the withholding taxable wage cap. 2. Taxable wages 3. New Jersey employee rate 4. Employee SUTA tax, rounded to the nearest cent $2,470 0.705% $17.41 Making It Work Using the amalgamated State SUTA chart, complete the following. Note: Round all amounts to the nearest cent. Akia Hayden lives in Alaska and has wages of $725.33 per week and has not exceeded the SUTA cap of $ Employee: Hayden, Akia Taxable wages SUTA tax rate Total unemployment tax State: Alaska % x.

Employee SUTA Contributions Some states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different than an employer's... taxable wages (those under the cap) times the state rate for employees. Let's investigate an individual that lives in New Jersey whose monthly wages equal $2,470 and whose earnings to date have not exceeded the New Jersey cap of $ Description Calculation 1. Looking at the chart, in the Employee column, it provides the employee withholding rate (0.705% in New Jersey) and the withholding taxable wage cap. 2. Taxable wages 3. New Jersey employee rate 4. Employee SUTA tax, rounded to the nearest cent $2,470 0.705% $17.41 Making It Work Using the amalgamated State SUTA chart, complete the following. Note: Round all amounts to the nearest cent. Akia Hayden lives in Alaska and has wages of $725.33 per week and has not exceeded the SUTA cap of $ Employee: Hayden, Akia Taxable wages SUTA tax rate Total unemployment tax State: Alaska % x.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 9MCQ

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1. Who assigns the SUTA tax rate to an employer? Answer:   A. The Internal Revenue Service B. The state in which the employer is located C. The Social Security Administration D. The American Payroll Association 2. What is the due date for the first quarter FUTA tax? Answer:   A. April 30 B. March 30 C. April 15 D. None of these options 3. Match each tax with its associated feature. SUTA Self-employment Social Security and Medicare The employer presently matches the amount employees pay. If net SE income is below $400, no tax is due. The number of laid-off employees may affect it.
Issue: Under the Federal Insurance Contributions Act (FICA) every person is an employer if the person employs one or more individuals for the performance of services in the United States. The Internal Revenue Service (IRS) test for an employer/employee relationship is if a business tells, or has a right to tell a worker how, when, and where to work then the worker is an employee, and if they meet these tests, must withhold and pay FICA taxes on those employees’ wages. During your life, you may have noticed many employees performing work for a company without paying FICA taxes (i.e. being paid “under the table”). Questions to be Answered:   1)   What are the concerns from a business perspective on this legally questionable practice? 2)   What are the concerns from a social perspective on this legally questionable practice?
1. What loan from the federal government given to individual states is used to provide unemployment benefits to state residents? Answer:   A. SUTA Advances B. FUTA Advances C. Title XII Advances D. Title 15 Advances 2. The SUTA tax rate is determined by an employer’s _____. Answer:   A. credit reduction B. FUTA tax rate C. experience rating D. Medicare tax rate 3. Identify each item as associated with Form 1099-NEC, Form 1096, or both. A.   Displays earnings for one individual Form 1099-NEC Form 1096 Both B.   Displays earnings for multiple individuals Form 1099-NEC Form 1096 Both C.   Requires a signature Form 1099-NEC Form 1096…
. If a fringe benefit involves a deduction from employee pay, which of the following is true? A. Employers may only offer the benefit to certain classes of employees. B. The employee must enroll in direct deposit for their pay. C. The fringe benefit must be subject to income tax. D. The amount of the deduction must be listed on the employee's pay advice. 2. The ________ determines when benefit amounts should be withheld from employee pay. A. employee B. employer C. IRS D. State in which the business is conducted
Can Employee's expenses (Unreimbursed) be itemized? Can Federal income tax withheld from salary wages be deducted from AGI? Can tuition, room, and board paid for college be itemized?
Which of the following statements regarding a money purchase plan is (are) correct? I. The employee can choose from among different levels of contribution rates. II. The employer's contribution is a set formula often stated as a percentage of the employee's pay deferral into the plan. II. Employees may be permitted to make voluntary after-tax contributions into the plan. A. None. 3. I only. C. I and Il only. D. Il and II only. E. I, Il and II.
2. Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee based on the following 2023 W-4 Information. Use the tables in IRS Publication 15- I. Using 2023 Form W-4 Employee Corn, A. Fogge, P. Felps, S. Carson, W Helm, M. More Marital than Step 2 Status 1 job? checked? S No S M M M 2 2 2 No No No No No No No Gross Additional Wage or deductitons Salary $0 $0 $0 $0 $0 Pay Frequency $ 675 weekly 1,960 weekly 1,775 biweekly 2,480 semi-monthly 5,380 monthly a. b. C. d. e. Amount to be Withheld Percentage Method Wage- Bracket Method
Identify all correct statements concerning payrolls andrelated payroll costs.a. Both employers and employees pay Social Security andMedicare taxes.b. Workers’ compensation premiums are withheld fromemployees’ wages.c. An employer’s total payroll costs usually exceed totalwages expense by about 71⁄2 percent.d. Under current law, employers are required to pay SocialSecurity taxes on employees’ earnings, but they are notrequired to pay for health insurance.
Recording employee payroll deductions may involve: Multiple Choice Liabilities to the employer. Liabilities to federal and state governments. Expenses for state unemployment. Expenses for the gross wages and salaries. Expenses for the employer portion of any medical insurance.
3. Are the federal and state income taxes withheld from employee paychecks a payroll tax expense for the em- ployer? Explain your answer.
Which of the following does NOT apply to both a W−2 and a W−3? A. Reports the total amount of wages, tips and compensation paid to the employee B. Employees use both forms to prepare their personal tax returns. C. Sent to the Social Security Administration D. Reports the total OASDI and Medicare taxes withheld
The Employee Retirement Income Security Act (ERISA) was established to provide: Question 16 options: a) funding for retirement plans. b) mandatory retirement plans for self-employed individuals. c) protection to employees participating in private employer retirement plans. d) individual trust funds for employees retiring from jobs in the federal government. e) the ability to retain the same retirement insurance when employees change employers.