Unemployment comp – payroll accounting

 

Reserve ratio   ……………………………………………………… Contribution Rate

 

0.0% or more but less than 1.0%     …………………………………………… 6.7%

 

1.0% or more but less than 1.2%……………………………………………….. 6.4%

 

1.2% or more but less than 1.4%……………………………………………….. 6.1%

 

1.4% or more but less than 1.6%……………………………………………….. 5.8%

 

1.6 or more but less than 1.8% …………………………………………………. 5.5%

 

1.8% or more but less than 2.0% ………………………………………………. 5.2%

 

2.0% or more but less than 2.2% ………………………………………………. 4.9%

 

2.2% or more but less than 2.4% ………………………………………………. 4.6%

 

2.4% or more but less than 2.6% ………………………………………………. 4.3%

 

2.6% or more but less than 2.8%……………………………………………….. 4.0%

 

2.8% or more but less than 3.0% ………………………………………………. 3.7%

 

3.0% or more but less than 3.2% ………………………………………………. 3.4%

 

3.2% or more   ……………………………………………………………………………. 3.1%

 

 

 

Hyram Co. which is located in State A had an average payroll of $850,000 for the three 12 month periods ending on June 30, 2013 (computation date for the tax year 2014).  As of June 30, 2013, the total contributions that had been made to Hyram Company’s reserve account, in excess of the benefits charged amounted to $17,440.  Compute:

 

 

 

5–12A.   (a)   Hyram’s reserve ratio for 2013 $XX,XXX ÷ $XXX,XXX =

 

                (b)   2014 contribution rate for the company _______ %

 

                (c)    Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions

 

                Balance needed to qualify for 4.6% rate: $XXX,XXX × X.XXX=$XX,XXX

 

                        Less: Actual balance……………………………………………………….                XX,XXX

 

                        Contribution needed……………………………………………………….                $X,XXX

 

 

 

Tax savings realized by the company, taking into consideration made in (c) if the taxable payroll in 2014 is $980,000

 

 

 

 

 

                (d)   Tax without voluntary contribution…. $XXX,XXX × X.XXX     =        $XX,XXX

 

                        Tax with voluntary contribution………. $XXX,XXX × X.XXX     =        XX,XXX

 

                        Tax decrease resulting from voluntary contribution………..                $X,XXX

 

                        Less: Amount of voluntary contribution…………………………..                   X,XXX

 

                        Tax savings realized……………………………………………………….                $X,XXX

 

 

 

Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll shop which has employed the following persons since the beginning of the year. Grady and Monroe are each paid a weekly salary allowance of $950.  The doll shop is located in a state that requires unemployment compensation contribution of employers of one or more individuals.  The company  is subject to state contributions at a rate of 3.1% for wages not in excess of $8100.  Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 10, 2014:

 

5–14A.   (a)                                                                        Taxable            OASDI             HI

 

                                                                                            Earnings           (6.2%)        (1.45%)

 

                        V. Hoffman…………………………………           $392.31                                           

 

                        A. Drugan…………………………………..             288.46                                           

 

                        G. Beiter……………………………………..             180.00                                           

 

                        S. Egan………………………………………             220.00                                           

 

                        B. Lin………………………………………….             160.00                                           

 

                Grady and Monroe (partners are not taxed under FICA)

 

 

 

                (b)   Taxable payroll: $1,240.77

 

                        OASDI……………………………………………… $1,240.77 × 0.062        =                      

 

                        HI……………………………………………………… $1,240.77 × 0.0145     =                      

 

 

 

                (c)    Taxable earnings:

 

                        G. Beiter………………………………………………………………..    $XXX

 

                        B. Lin…………………………………………………………………….    XXX

 

                                                                                                                     $XXX

 

                        SUTA tax………………………………………………….. $XXX × 0.031     =         $XX.XX

 

 

 

                (d)   Taxable earnings:

 

                        B. Lin…………………………………………………………………….    $XXX

 

                        Net FUTA tax……………………………………………. $XXX × 0.006     =           $X.XX

 

                        The remaining employees are beyond the $7,000 limit; therefore,

 

                        there is no FUTA tax on their salaries.

 

 

 

                (e)   FICA………………………………………………………………..    $XX.XX

 

                        SUTA………………………………………………………………       XX.XX

 

                        Net FUTA………………………………………………………..          X.XX

 

                        Total payroll taxes…………………………………………… $XXX.XX

 

 

 

 

 

Semester Papers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.