Question

In: Accounting

During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for...

During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $139,000. Compute:

a. Net FUTA Tax

b. Net SUTA tax

c. Total unemployment taxes:

Expert Solution

Given information:

Taxable payroll = $139,000

SUTA tax rate = 4.8%

a. Net FUTA taxes:

FUTA on taxable payroll = table payroll * net FUTA tax rate

= $139,000 * 0.6%

= $834

b. Net SUTA taxes:

SUTA on taxable payroll = table payroll * SUTA tax rate

= $139,000 * 4.8%

= $6,672

c. Total unemployment taxes:

Total unemployment taxes = FUTA +SUTA

= $834 + $6,672

= $7,506

ekkarill92 answered 1 year ago

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