Exam 5: Unemployment Compensation Taxes

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?

In order to obtain the maximum credit allowed against the federal unemployment tax,the employer must have paid its SUTA contributions by the due date of Form 940.

Voluntary contributions to a state's unemployment department are:

If a company is liable for a credit reduction (due to Title XII advance),this extra tax must be paid along with each of the required deposits made during the year.​

For FUTA purposes,an employer must pay a higher FUTA tax rate on executives than on nonsupervisory personnel.

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.

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______________

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____________

A traveling salesperson who solicits and transmits to the principal orders for merchandise for resale is considered an employee under FUTA.

A federal unemployment tax is levied on:

On Form 940,even if the total FUTA tax is more than $500,there is no listing of quarterly federal unemployment tax liabilities.

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.                                                             a                     .          $\text { ruverside }$      ___________      ________ b. $\text { Harrison Furniture Company }$ ___________ __________ ​

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______________

Unemployment taxes (FUTA and SUTA)do not have to be paid by an employer who has only part-time employees.

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

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

Retirement pay is taxable wages for FUTA purposes.

If an employer's quarterly tax liability is $525,it must be paid on or before the last day of the month following the end of the quarter.

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

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.