Question

On April 30, 2019, Chung Furniture Company prepared its state unemployment tax return for the first quarter of the year. The firm had taxable wages of$100,500. Because of a favorable experience rating, Chung pays SUTA tax at a rate of 1.4 percent. How much SUTA tax did the firm owe for the quarter?

Answer 1

The amount owed by C Furniture Company towards SUTA taxes for the quarter ending April 30, 2019 is as follows:

Total taxable wages $100,550

SUTA tax rate because of favorable experience rating is 1.4%. Therefore, SUTA tax payable for the quarter ending April 30, 2019 is

While making payment SUTA tax payable account should be debited with corresponding credit entry to cash.