In September, Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid to each employee. An analysis of the company's payroll for the year shows total wages paid of $180,260. The salaries of the president and the vice president of the company were $18,400 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 four months. Included in the total wages were $810 paid to a director who only attended director meetings during the year, $6,450 paid to the factory superintendent, and $2,050 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state. In addition to the total wages of $180,260, a payment of $2,580 was made to Andersen Accounting Company for an audit it performed on the company's books in December. Compute the following; round your answers to the nearest cent. a. Net FUTA tax b. SUTA tax

In September, Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid to each employee. An analysis of the company's payroll for the year shows total wages paid of $180,260. The salaries of the president and the vice president of the company were $18,400 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 four months. Included in the total wages were $810 paid to a director who only attended director meetings during the year, $6,450 paid to the factory superintendent, and $2,050 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state. In addition to the total wages of $180,260, a payment of $2,580 was made to Andersen Accounting Company for an audit it performed on the company's books in December. Compute the following; round your answers to the nearest cent. a. Net FUTA tax b. SUTA tax

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 14PA

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