Question

The partnership of Keenan and Kludlow paid the following wages during this year:

M. Keenan (partner)	$112,000
S. Kludlow (partner)	99,500
N. Perry (supervisor)	52,500
T. Lee (factory worker)	37,300
R. Rolf (factory worker)	28,300
D. Broch (factory worker)	6,200
S. Ruiz (bookkeeper)	26,600
C. Rudolph (maintenance)	5,300

In addition, the partnership owed $200 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following:

Round your answers to the nearest cent.

a. Net FUTA tax for the partnership for this year
$

b. SUTA tax for this year
$

Answer 1

a	Calculation of FUTA Tax Payable:
	Particulars	Amount	Amount
	Gross Wages		3,67,700
	Less Salary to partner keenan	1,12,000
	Less Salary to partner Kludlow	99,500
	Less Salaries above 7000 limit
	Perry (52,500 -7,000)	45500
	Lee (37,300 - 7,000)	30300
	Rolf (28,300 - 7,000)	21300
	Ruiz (26,600 - 7,000)	19600	3,28,200
	Taxable Wages (1)		39,500
	FUTA Tax Rate @ 0.6%     (2)		0.60%
	FUTA Tax Payable = (3) = (1) * (2)		$237

b	Calculation of SUTA Tax Payable
	Particulars	Amount	Amount
	Gross Wages		3,67,700
	Less Salary to partner keenan	1,12,000
	Less Salary to partner Kludlow	99,500
	Less Salaries above 9000 limit
	Perry ($52,500 -$9,000)	43500
	Lee ($37,300 - $9,000)	28300
	Rolf ($28,300 - $9,000)	19300
	Ruiz ($26,600 - $9,000)	17600	3,20,200
	Taxable Wages (1)		47,500
	FUTA Tax Rate @ 2.95%     (2)		2.95%
	FUTA Tax Payable = (3) = (1) * (2)		$1401.25