Compute the net futa tax since first pay period of the year

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Reference no: EM13863771

Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours.

Below is the payroll register for unemployment taxes (FUTA and SUTA) for the pay of January 14.

KIPLEY COMPANY, INC. 

Payroll Register

Time 

Employee Name

Marital Status

Taxable Earnings

Card No.

 

 

 

Gross Earnings

11

Carson, F.

S

$700.00

12

Wilson, W.

S

897.04

13

Utley, H.

M

678.75

21

Fife, L.

M

877.1

22

Smith, L.

S

790

31

Fay, G.

M

539.15

32

Robey, G.

M

623.08

33

Schork, T.

S

773.08

51

Hardy, B.

M

666.11

99

Kipley, C.

M

1,000.00

Compute the following: If required, round your answers to the nearest cent.

1. 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.

Net FUTA tax = $

2. SUTA tax. Since Kipley Company is a new employer, Pennsylvania has assigned the company a contribution rate of 3.6785% on the first $8,750 of each employee's earnings. Employees pay 0.07% on total gross pay.

SUTA tax = $

Employees SUTA tax = $

Reference no: EM13863771

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