a
Introduction:The Federal
The FUTA tax for T before the state tax credit.
b
Introduction:The Federal Unemployment Tax Act (FUTA) is a payroll tax paid by employers on employee wages. The FUTA tax rate is 6 percent of an employee’s wages up to $7,000, and the employer can report their FUTA liability for the year on Form 940.
The State unemployment tax.
c
Introduction:The Federal Unemployment Tax Act (FUTA) is a payroll tax paid by employers on employee wages. The FUTA tax rate is 6 percent of an employee’s wages up to $7,000, and the employer can report their FUTA liability for the year on Form 940.
The FUTA tax after the state tax credit
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Income Tax Fundamentals 2020
- Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.arrow_forwardEagle Life Insurance Company pays its employees 0.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus 100 a month for the cost of a pass. Tom collected 100 for his automobile mileage, and Mason received 100 as reimbursement for the cost of a bus pass. a. What are the effects of the above on Toms and Masons gross income? b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is 0.30 per mile. What are Toms and Masons after-tax costs of commuting to and from work?arrow_forwardThomas is an employer with two employees, Patty and Selma. Patty's wages are $12,450 and Selma's wages are $3,110. The state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas: Round your answer to two decimal places. a. FUTA tax before the state tax credit $fill in the blank 1 b. State unemployment tax $fill in the blank 2 c. FUTA tax after the state tax creditarrow_forward
- Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal exemptions and had a take-home pay of $499.00 this week, how much would her employer take from her pay to satisfy part of the tax levy?Round your intermediate calculations and answer to the nearest cent.$_________arrow_forwardMarilyn earns $1,400.00 bi-weekly. She has a bi-weekly taxable car allowance of $70.00 and a bi-weekly group term life taxable benefit of $25.00. Union dues of $18.00 are deducted from each pay. Her TD1 and TD1AB forms have claim code 1. Calculate the federal and provincial taxes.arrow_forwardJohn Waits owns a small shop with three employees. For one payroll period the total withholding tax for all employees was $1,710. The total employees' Social Security tax was $171 and the total employer's Social Security tax was $171. The total employees' Medicare tax was $116 How much must John deposit as the employer's share of Social Security tax and Medicare tax? What is the total tax that must be deposited? John must deposit $ as the employer's share of Social Security tax and Medicare tax. (Simplify your answer.) The total tax that must be deposited is (Simplify your answer.) C $0.arrow_forward
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- Kevin owns a small business with two employees. For one payroll period the total withholding tax for all employees was 1,536. The total employees Social security tax was $168 and the total employers social security tax was $251. The total employees Medicare tax was $110 How much John deposit as the employer's share of social security tax and Medicare tax? What is the total tax that must be deposited?arrow_forwardAn employer in Cincinnatti, Ohio employs two individuals, whose taxable earnings to date (prior to the current pay period) are $4,900 and $7,700. During the current pay period, these employees earn $2,700 and $1,800, respectively. The applicable SUTA tax rate is 2.5%, and the Ohio SUTA threshold is $9,000. FUTA Tax________ SUTA Tax _____arrow_forwardJohn Waits owns a small shop with two employees. For one payroll period the total withholding tax for all employees was $1,548. The total employees' Social Security tax was $177 and the total employer's Social Security tax was $251. The total employees' Medicare tax was $109 How much must John deposit as the employer's share of Social Security tax and Medicare tax? What is the total tax that must be deposited? John must deposit S as the employer's share of Social Security tax and Medicare tax. (Simplify your answer.) The total tax that must be deposited is S (Simplify your answer.)arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT