Author Question: During the first quarter, Jason Beverage Distributors paid wages of 978,800 . Of this amount, 146,00 ... (Read 38 times)

KWilfred · **on:** Jun 24, 2018

During the first quarter, Jason Beverage Distributors paid wages of 978,800 . Of this amount, 146,00 . was paid to employees who had been paid 7,00 . earlier in the quarter. What was the employer's liability for FUTA and SUTA taxes, assuming that the state rate was 5.7? (Round down to the nearest 1.)

Question 2

A 1,00 . bond, with interest at 9 on March 1 and September 1, was purchased on November 4 at 107 plus accrued interest. Compute the entire purchase cost of the bond. (Assume a 360-day year and a commission of 5 per bond.)

Brenm · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

54,131
978,800 - 146,00 . = 832,800 subject to FUTA and SUTA taxes
832,800 0.00 . = 6,662.4 FUTA tax payment
832,800 0.057 = 47,469.6 SUTA tax payment
6,662.4 + 47,469.6 SUTA tax payment = 54,132

Answer to Question 2

1,091