Exam 5: Unemployment Compensation Taxes

If an employee has more than one employer during the current year,the taxable wage base applies separately to each of those employers,unless one employer has transferred the business to the second.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -Refer to Instruction 5-1.John Gercke is an employee of The Woolson Company.During the first part of the year,he earned $6,800 while working in State A.For the remainder of the year,the company transferred him to State B where he earned $16,500.The Woolson Company's tax rate in State A is 4.2%,and in State B it is 3.15% on the first $7,000.Assuming that reciprocal arrangements exist between the two states,determine the SUTA tax that the company paid to: a)State A __________. b)State B __________.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -Refer to Instruction 5-1.Stys Company's payroll for the year is $1,210,930.Of this amount,$510,710 is for wages paid in excess of $7,000 to each individual employee.The SUTA tax rate for the company is 3.2% on the first $7,000 of each employee's earnings. a)The amount of FUTA tax for the year is __________. b)The amount of SUTA tax for the year is __________.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -In Part 5 of Form 940,Peterson Company reported FUTA tax liabilities as follows: First quarter: $397.50 Second quarter: $209.10 Third quarter: $274.50 Fourth quarter: $262.20 List the amounts and the dates of each required FUTA tax deposit: First Quarter Deposit $__________ date __________ Second Quarter Deposit $__________ date __________ Third Quarter Deposit $__________ date __________ Fourth Quarter Deposit $__________ date __________

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -Refer to Instruction 5-1.Michael Mirer worked for Dawson Company for six months this year and earned $11,200.The other six months he earned $6,900 working for McBride Company (a separate company).The amount of FUTA taxes to be paid on Mirer's wages by the two companies is: a)Dawson Company __________. b)McBride Company __________.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -Refer to Instruction 5-1.Queno Company had FUTA taxable wages of $510,900 during the year.Determine its: a)gross FUTA tax __________. b)FUTA tax credits (assuming no penalties)__________. c)net FUTA tax __________.

​Even if the duties of depositing the FUTA taxes and filing Form 940 have been outsourced,the employer is still the responsible party.

FUTA and SUTA coverages extend to U.S.citizens working abroad for American employers.

"Dumping" is legal in all but a few states.

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -Refer to Instruction 5-1.Aaron Norman earned $24,900 for the year from Marcus Company.The company is subject to a SUTA tax of 4.7% on the first $9,900 of earnings.Determine: a)the employer's FUTA tax on Norman's earnings __________. b)the employer's SUTA tax on Norman's earnings __________.

If an employee works in more than one state,the employer must pay a separate SUTA tax to each of those states in which the employee earns wages.

An employer must pay the quarterly FUTA tax liability if the liability is more than:

Which of the following is not a factor considered in determining coverage of interstate employees?

Even if a state repays its Title XII advances,all employers in that state are subject to a credit reduction in the year of the advance.

Which of the following payments are taxable payments for federal unemployment tax?

Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience with the risk of unemployment?

When making a payment of FUTA taxes,the employer must make the payment by the:

Instruction 5-1 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. ​ -Refer to Instruction 5-1.In the first quarter of the year,Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer.How much would the employer's FUTA tax be for the first quarter on Gibson?

If the employer is tardy in paying the state contributions,the credit against the federal tax is limited to what percent of the late payments that would have been allowed as a credit if the contributions had been paid on time?

An employer can use a credit card to pay the quarterly deposit of FUTA taxes during the year.​