Questions
Lopez Company paid wages of $178,200 this year. Of this amount, $107,500 was taxable for net...

Lopez Company paid wages of $178,200 this year. Of this amount, $107,500 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for lopez Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.

a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions
$

b. Amount that lopez Company would pay to the federal government for its FUTA tax
$

c. Amount that the company lost because of its late payments
$

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During 2017, lopez worked for two different employers. Until May, he worked for M Construction Company in, Iowa, and earned $21,210. The state unemployment rate for lopez is 4.6%. He then changed jobs and worked for Hugh Improvement Company in kansas, and earned $28,200 for the rest of the year. The state unemployment rate for Ford is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by each company. Round your answers to the nearest cent.

Use Figure 5.1 to determine SUTA caps in Iowa and Kansas

A lopez Construction Company

$

b. Hugh Improvement Company

$

GURE 5.1


Summary of State Unemployment Compensation Laws (2016)
Warning: The provisions of the state laws are subject to change at any time.

State

Size of Firm (One employee in specified time and/or size of payroll1)

Contributions (On first $7,000 unless
otherwise indicated)

Benefits (Excluding
dependency allowances)

Employer Min.–Max.

Employee


Waiting Period (weeks)

Max. per Week

Min.
per Week

Max. Duration (weeks)

ALABAMA

20 weeks

0.65%–6.8% on first $8,000

none

$265

$45

26

ALASKA

any time

1.0%–5.4% on first $39,700

0.5% on first $39,700

1

370

56

26

ARIZONA

20 weeks

0.03%–7.79%**

1

240

60

26

ARKANSAS

10 days

0.5%–14.4% on first $12,000**

1

451

81

26

CALIFORNIA*

over $100 in any calendar quarter

1.5%–6.2%

0.9% on first $106,742 (disability ins)

1

450

40

25

COLORADO

any time

0.77%–10.14% on first $12,200

1

552

25

26

CONNECTICUT*

20 weeks

1.9%–6.8% on first $15,000

none

598

15

26

DELAWARE

20 weeks

0.3%–8.2% on first $18,500

none

330

20

26

DISTRICT OF COLUMBIA

any time

1.6%–7.0% on first $9,000

1

359

50

26

FLORIDA

20 weeks

0.1%–5.4%

1

275

32

23

GEORGIA

20 weeks

0.04%–8.10% on first $9,500**

none

330

44

26

HAWAII

any time

0.2%–5.8% on first $42,200

0.5% of maximum weekly wages of $982.36, not to exceed $4.91 per week (disability ins)

1

551

5

26

IDAHO

20 weeks or $300 in any calendar quarter

0.425%–5.4% on first $37,200

1

398

72

26

ILLINOIS

20 weeks

0.55%–7.75% on first $12,960

1

426

51

25

INDIANA

20 weeks

0.505%–7.474% on first $9,500**

1

390

50

26

IOWA

20 weeks

0.0%–8.0% on first $28,300

none

431

64

26

KANSAS

20 weeks

0.2%–7.6% on first $14,000**

1

469

117

26

KENTUCKY

20 weeks

1.0%–10.0% on first $10,200**

none

415

39

26

LOUISIANA

20 weeks

0.10%–6.2% on first $7,700**

1

247

10

26

MAINE

20 weeks

0.63%–5.46% on first $12,000**

1

386

67

26

MARYLAND

any time

0.3%–7.5% on first $8,500

none

430

25

26

MASSACHUSETTS

13 weeks

0.73%–11.13% on first $15,000**

1

722

31

30

MICHIGAN

20 weeks or $1,000 in calendar year

0.06%–10.3% on first $9,000**

none

362

81

20

MINNESOTA

20 weeks

0.2%–9.1% on first $31,000**

1

658

38

26

MISSISSIPPI

20 weeks

0.36%–5.56% on first $14,000

1

235

30

26

MISSOURI

20 weeks

0.0%–7.8% on first $13,000**

1

320

48

26

MONTANA

Over $1,000 in current or preceding year

0.0%–6.12% on first $30,500

1

471

134

28

NEBRASKA

20 weeks

0.0%–5.4% on first $9,000**

1

362

30

26

NEVADA

$225 in any quarter

0.25%–5.4% on first $28,200

none

407

16

26

NEW HAMPSHIRE

20 weeks

0.1%–7.0% on first $14,000

none

427

32

20

NEW JERSEY

$1,000 in any year

1.2%–7.0% on first $32,600**

0.705% (0.2% for disability ins; 0.505% for unempl. Comp/family leave/workforce development funds) on first $32,600

1

657

73

26

NEW MEXICO

20 weeks or $450 in any quarter

0.33%–5.4% on first $24,100**

1

423

79

26

NEW YORK

$300 in any quarter

2.1%–9.9% on first $10,700**

0.5%–limit $0.60 weekly

1

420

100

26

NORTH CAROLINA

20 weeks

0.06%–5.76% on first $22,300**

1

350

46

26

NORTH DAKOTA

20 weeks

0.28%–10.72% on first $37,200**

1

633

43

26

OHIO*

20 weeks

0.3%–8.7% on first $9,000**

1

424

111

26

OKLAHOMA

0.1%–5.5% on first $17,500

1

505

16

26

OREGON

20 weeks

1.2%–5.4% on first $36,900

1

538

126

26

PENNSYLVANIA

18 weeks or $225 in any quarter

2.801%–10.8937% on first $9,500**

0.07% on total wages

1

573

35

26

PUERTO RICO

any time

2.4%–5.4%

0.3% on first $9,000 (disability ins)

1

133

7

26

RHODE ISLAND

any time

1.69%–9.79% on first $22,000**

1.2% on first $66,300 (disability ins)

1

566

43

26

SOUTH CAROLINA

any time

0.06%–5.46% on first $14,000

1

326

42

26

SOUTH DAKOTA

20 weeks

0.0%–10.03% on first $15,000**

1

345

28

26

TENNESSEE

20 weeks

0.01%–10.0% on first $8,000

1

275

30

26

TEXAS

20 weeks

0.45%–7.47% on first $9,000**

1

454

63

26

UTAH

$140 in calendar quarter in current or preceding calendar year

0.2%–7.2% on first $32,200

1

496

25

26

VERMONT

20 weeks

1.3%–8.4% on first $16,800

1

425

59

26

VIRGIN ISLANDS*

any time

1.5%–6.0% on first $23,000

1

495

33

26

VIRGINIA

20 weeks

0.17%–6.27% on first $8,000

1

378

60

26

WASHINGTON

any time

0.17%–5.84% on first $44,000**

1

664

158

26

WEST VIRGINIA

20 weeks

1.5%–8.5% on first $12,000**

1

424

24

26

WISCONSIN

20 weeks

0.05%–12.0% on first $14,000**

none

370

54

26

WYOMING

$500 in current or preceding calendar year

0.27%–8.77% on first $25,500

1

471

34

26

1This is $1,500 in any calendar quarter in current or preceding calendar year unless otherwise specified.
*2015 FUTA credit reduction state
**Allow voluntary contributions

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Multiple Choice

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