Module Written exercise
For this exercise, conduct an internet search or use your assigned reading to answer the following questions:
1. What is SUTA? Who is responsible for paying SUTA taxes?
2. What is an experience rating? How does it affect the employer's SUTA rate?
3. How can employers decrease their experience ratings?
4. How does an employer report SUTA taxes? Identify a specific state in your explanation.
Module Payroll Problems
Problem 1
Assume that the SUTA tax rate is 5.25%. Calculate the SUTA taxes for the employer.
|
Employee
|
Wages
|
|
No. 1
|
$ 1,325.00
|
|
No. 2
|
$ 2,595.00
|
|
No. 3
|
$ 3,200.00
|
|
No. 4
|
$ 4,600.00
|
|
No. 5
|
$ 7,250.00
|
|
Totals
|
|
Problem 2
Assume that the SUTA tax rate is 6.5% and the FUTA tax rate is .7%. Also assume that SUTA and FUTA taxes are collected on the first $7,850.
Calculate the SUTA and FUTA taxes for the employer.
|
Employee
|
YTD Wages
|
Current Wages
|
|
No. 1
|
$ 850.00
|
$ 850.00
|
|
No. 2
|
$ 1,380.00
|
$ 1,380.00
|
|
No. 3
|
$ 2,978.00
|
$ 2,978.00
|
|
No. 4
|
$ 3,895.00
|
$ 3,895.00
|
|
No. 5
|
$ 5,766.00
|
$ 5,766.00
|
|
Totals
|
|
|
Problem 3
Assume that the SUTA tax rate is 5.8% and the FUTA tax rate is .65% and that both taxes are limited to the first $6,500. Also assume that OASDI taxes are collected on the first $113,500.
Use an OASDI rate of 3.5% and an HI rate of .75%. Calculate the SUTA, FUTA, and FICA taxes.
|
Employee
|
YTD Wages
|
Current Wages
|
|
No. 1
|
$ 900.00
|
$ 900.00
|
|
No. 2
|
$ 1,200.00
|
$ 1,200.00
|
|
No. 3
|
$ 2,100.00
|
$ 2,100.00
|
|
No. 4
|
$ 3,900.00
|
$ 3,900.00
|
|
No. 5
|
$ 5,400.00
|
$ 5,400.00
|
|
Totals
|
|
|
Problem 4
Assume that the SUTA tax rate is 7.2% of the first $7,400 and the FUTA tax rate is .9% of the first $6,000. Also assume that OASDI taxes are collected on the first 112,300.
Use an OASDI rate of 4.5% and an HI rate of .65%. Calculate the SUTA, FUTA, and FICA taxes. Also determine the Payroll Taxes Expense and record the accrual entry for the unpaid tax obligation for the employer.
|
Employee
|
YTD Wages
|
Wages
|
|
No. 1
|
$ 1,300.00
|
$ 1,300.00
|
|
No. 2
|
$ 2,800.00
|
$ 2,800.00
|
|
No. 3
|
$ 3,650.00
|
$ 3,650.00
|
|
No. 4
|
$ 4,250.00
|
$ 4,250.00
|
|
No. 5
|
$ 5,600.00
|
$ 5,600.00
|
|
Totals
|
|
|
Attachment:- Module_Assignment.xlsx