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

question 63

Essay

Instruction 5-1
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.
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-Refer to Instruction 5-1.Ted Carman worked for Rivertide Country Club and earned $28,500 during the year.He also worked part time for Harrison Furniture Company and earned $12,400 during the year.The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000,and the rate for Harrison Furniture Company is 5.1% on the first $8,000.Calculate the FUTA and SUTA taxes paid by the employers on Carman's earnings.
FUTA
SUTA
a.Riverside
______________
_____________
b.Harrison Furniture Company
______________
_____________
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Definitions:

Year 2

Refers to the second year of a time-related context or sequence, not a standalone key term without additional context.

Contribution Margin

The amount of revenue remaining after subtracting variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Per Unit

Refers to expressing costs, revenues, or other financial metrics on a per-unit basis to provide a standardized measure.

Absorption Costing

An accounting method that includes all manufacturing costs, both variable and fixed, in the cost of a product, and is used for external reporting purposes.