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Exam 5: Unemployment Compensation Taxes

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Question 51

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Leinart Company had taxable wages (SUTA and FUTA) totaling $175,000. During the year, the company was late in paying its state contributions of 3.6% and is therefore subject to the FUTA credit reduction. Determine the amount of net FUTA tax.

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[(5.4% - 3.6%) + (90...

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Question 52

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An employer can use a credit card to pay the balance with Form 940 (under $500.)

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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.

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

Once a company attains the status of employer for FUTA purposes, that status continues for four calendar years.

In order to avoid a credit reduction for Title XII advances, a state must repay the loans by:

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?

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:

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.

Englesbe Company's FUTA tax liability was $289.50 for the 1st quarter; $129.80 for the 2nd quarter; $123.00 for the 3rd quarter; $16.00 for the 4th quarter. The company's first required payment of FUTA taxes is ______.

In the case of an employee who changes jobs during the year, only the first employer must pay FUTA tax on that employee's earnings.

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