Question

Requirements:

Compute and record the employee's SUTA contributions.

Compute and record the Kipley Company's SUTA and FUTA contributions.

Payroll Register

The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program. a

Complete the following step:

Compute and record the employee's SUTA contributions (employees pay 0.07% on total gross pay).

Note: Round your final answers to nearest cent.

KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS									NET PAY
Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Carson, F.	$700.00	$43.40	$10.15	$75.00	$21.49	$	$21.00	$20.00
Wilson, W.	897.04	55.62	13.01	118.00	27.54		26.91	50.00
Utley, H.	678.75	42.08	9.84	31.00	20.84		20.36	40.00
Fife, L.	877.10	54.38	12.72	35.00	26.93		26.31	50.00
Smith, L.	790.00	48.98	11.46	77.00	24.25		23.70	20.00
Fay, G.	539.15	33.43	7.82	10.00	16.55		16.17	40.00
Robey, G.	623.08	38.63	9.03	---	19.13		18.69	50.00
Schork, T.	773.08	47.93	11.21	80.00	23.73		23.19	60.00
Hardy, B.	666.11	41.30	9.66	8.00	20.45		19.98	30.00
Kipley	1,000.00	62.00	14.50	21.00	30.70		30.00	80.00
Totals		$467.75	$109.40	$455.00	$231.61	$	$226.31	$440.00			----

Employer Register

The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. a

Complete the following steps:

Net FUTA tax: Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employee’s gross earnings is subject to the FUTA tax. (The employer rate is 0.6%)

SUTA tax: Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.6785% on the first $9,750 of each employee’s earnings.

KIPLEY COMPANY, INC. Employer Register Payroll Taxes
	Earnings	OASDI	HI	FUTA	SUTA
Totals	$	$467.75	$109.39	$	$

Answer 1

Part 1)

The table with employee's SUTA contributions is completed as below:

KIPLEY COMPANY, INC.
Employee Payroll Register
For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS									NET PAY
Name	Gross (A)	OASDI	HI	FIT	SIT	SUTA (A*.07%)	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Carson, F.	700	43.4	10.15	75	21.49	0.49	21	20
Wilson, W.	897.04	55.62	13.01	118	27.54	0.63	26.91	50
Utley, H.	678.75	42.08	9.84	31	20.84	0.48	20.36	40
Fife, L.	877.1	54.38	12.72	35	26.93	0.61	26.31	50
Smith, L.	790	48.98	11.46	77	24.25	0.55	23.7	20
Fay, G.	539.15	33.43	7.82	10	16.55	0.38	16.17	40
Robey, G.	623.08	38.63	9.03	---	19.13	0.44	18.69	50
Schork, T.	773.08	47.93	11.21	80	23.73	0.54	23.19	60
Hardy, B.	666.11	41.3	9.66	8	20.45	0.47	19.98	30
Kipley	1,000.00	62	14.5	21	30.7	0.70	30	80
Totals		$467.75	$109.40	$455.00	$231.61	$5.28	$226.31	$440.00

______

Part 2)

The table with employer's SUTA and FUTA contributions is provided as follows:

KIPLEY COMPANY, INC.
Employer Register
Payroll Taxes
	Earnings (A)	OASDI	HI	FUTA (A*.6%)	SUTA (A*3.6785%)
Carson, F.	700	43.4	10.15	4.20	25.75
Wilson, W.	897.04	55.62	13.01	5.38	33.00
Utley, H.	678.75	42.08	9.84	4.07	24.97
Fife, L.	877.1	54.38	12.72	5.26	32.26
Smith, L.	790	48.98	11.46	4.74	29.06
Fay, G.	539.15	33.43	7.82	3.23	19.83
Robey, G.	623.08	38.63	9.03	3.74	22.92
Schork, T.	773.08	47.93	11.21	4.64	28.44
Hardy, B.	666.11	41.3	9.66	4.00	24.50
Kipley	1,000.00	62	14.5	6.00	36.79
Totals		$467.75	$109.40	$45.27	$277.52