Exam 5: Unemployment Compensation Taxes

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.Niemann Company has a SUTA tax rate of 7.1%.The taxable payroll for the year for FUTA and SUTA is $82,600. a)The amount of FUTA tax for the year is __________. b)The amount of SUTA tax for the year is __________.

Services performed by a child under the age of 21 for a parent-employer are excluded from FUTA coverage.

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.Ted Carman worked for Rivertide Country Club and earned $28,500 during the year.He also worked part time for Harrison Furniture Company and earned $12,400 during the year.The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000,and the rate for Harrison Furniture Company is 5.1% on the first $8,000.Calculate the FUTA and SUTA taxes paid by the employers on Carman's earnings. FUTA SUTA a.Riverside ______________ _____________ b.Harrison Furniture Company ______________ _____________ ​

Unlike Form 941,there is no penalty for the late filing of Form 940.

If the employer has made timely deposits that pay the FUTA tax liability in full,the filing of Form 940 can be delayed until:

Every employer is entitled to a 5.4 percent credit against the gross FUTA tax of 6.0 percent.

Services performed in the employ of a religious organization that is exempt from federal income tax are also exempt from FUTA coverage.