Instruction 5-1 Use the Net FUTA Tax Rate of 0.6% on the 0.6

question 54

Essay

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 . Sparks Company's SUTA rate for next year is 3.25% because its reserve ratio falls into the state's 10% to less than 12% category [(contributions - benefits paid) ÷ average payroll = $414,867 ÷ $3,521,790 = 11.78%]. If the next bracket (12% to less than 14%) would give the company a lower tax rate of 3.05%, what would be the least amount of the voluntary contribution needed to qualify the company for the 3.05% SUTA tax rate?

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Definitions:

Least Common

The smallest or rarest occurrence or item in a given set or category.

Anti-D Serum

An immunoglobulin given to prevent Rh incompatibility reactions, often used in pregnancy.

Rh Antigens

Proteins present on the surface of red blood cells that determine an individual's Rh blood group, critical in blood transfusion compatibility.

Agglutinogens

Antigens on the surfaces of red blood cells that determine blood types and can cause agglutination.