Homework answers / question archive / Employers will receive a credit against the Federal Unemployment Tax (FUTA) obligation for a portion of any payments made toward the State Unemployment Tax (SUTA) fund

Employers will receive a credit against the Federal Unemployment Tax (FUTA) obligation for a portion of any payments made toward the State Unemployment Tax (SUTA) fund

Accounting

Share With

Employers will receive a credit against the Federal Unemployment Tax (FUTA) obligation for a portion of any payments made toward the State Unemployment Tax (SUTA) fund.

Based on the following data, compute the amount of credit the company will receive against their total FUTA tax, to determine the amount due at the time of filing:

ABC Company has annual wages to employees totaling $151,000 for. The portion of those wages exceeding the $7,000 per employee FUTA tax wage base is $87,500.

• First, determine the number of wages subject to FUTA tax for 2018.
• Assuming ABC is current with and has paid all applicable SUTA taxes on employee wages this year, determine the amount of credit against the FUTA tax obligation.
• Determine the net FUTA tax due after any applicable SUTA credit is applied.