How is virginia SUTA (state unemployment tax) calculated?
You are absolutely correct in sayng that the VEC website provides very little information. The taxable wage base in Virginia is the first $8,000 that each employee earns per year. You are correct in stating that you pay on the first 8000. Therefore, if you manage to have very low turnover, it is less expensive for the Employer. If, for example, you pay 20 employees 2000/year {equaling the hypothetical 40000 that you mentioned}, you would have to shell out 1000 {50X20}. But if you have 2 employees who make 20000, you wind up paying 400 { 200X2}. I hope you really got an experience rate of 2.5%. The lowest I ever saw was 2.69%. You also have to make sure you have work for the employee, so, if the employee walks out and attempts to collect unemployment, you do not have to pay. I saw one rate go from 2.69% to 5.10%. Also, if you can avoid having to cut hours, that will help, also. Although not as expensive, it will still cost if the employee files for partial unemployment. It really IS confusing, so I have included the e-mail of Mrs. Suetta Freeman - who I have had the pleasure to meet - as you probably will have more questions. The computers are connected throughtout the state now, hence, if you mail your payments in, they will find it. Call a couple days later to confirm they received it. I say "mail" because I do not like paying online. suetta.freeman@vec.virginia.gov 703-803-1121 Fax: 703-803-2740
How do I calculate the state and federal unemployment taxes payable for the month of March?
Francisco Company has 20 employees, each of whom earns $2,600 per month and is paid on the last day of each month. All 20 have been employed continuously at this amount since January 1. Francisco uses a payroll bank account and special payroll checks to pay its employees. On March 1, the following accounts and balances exist in its general ledger: a. FICA—Social Security Taxes Payable, $6,448; FICA—Medicare Taxes Payable, $1,508. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.) b. Employees' Federal Income Taxes Payable, $13,000 (liability for February only). c. Federal Unemployment Taxes Payable, $832 (liability for January and February together). d. State Unemployment Taxes Payable, $4,160 (liability for January and February together). During March and April, the company had the following payroll transactions. Mar. 15: Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $20,956 check is in payment of the February FICA and employee income taxes. Mar. 31: Recorded the March payroll. Issued checks payable to each employee in payment of the March payroll. The payroll register shows the following summary totals for the March pay period: Office Salaries = 20,800 Shop Wages = 31,200 Gross Pay = 52,000 FICA Taxes = 3224 (Social Security) and 754 (Medicare)
How do I search for employer Unemployment Tax Number?
You don't. If you want it ask the employer. This is similiar to a social security number, employer Identification number, etc. Private information.
Does your former employer pay a portion of your unemployment to the state?
they pay into the system while you are working there - in Penna my company's rate is about 7.5% of each workers first $8000 in earnings each yr. If you get laid off and collect unemployment, the benefits you collect, get charged against the UC accounts all your former employers you had during the "earnings" year used to calculate your benefit - they don;t pay your unemployment benefits directly - it just gets charged against their acct - too many unemployment claims against a company in a year and their unemployment tax rat could increase going into the future. The unemployment benefits you receive might only be about HALF of what your were making when you were working and some of it is taxable income to you (used to be all was taxable - Prez Obama just change that). So long as the company has actually been paying into the unemployment system on your behalf - you will still get benefits if they totally close down
Why do I have to pay federal taxes on my unemployment money?
You pay taxes on it because the law says that you do. Pretty simple there! You're not being double taxed. Unemployment comp is based upon your GROSS pay during the qualification period. The unemployment trust fund is funded primarily by employer taxes. A few states do allow a small portion of that to be paid by employees but that's really a moot point. The fact that a portion of any taxes that you paid might conceivably wind up funding unemployment is irrelevant and does not mean that you're being double taxed.
How much does the employer pay of payroll taxes.?
The employer's share of social security taxes - which matches what you have withheld. Federal unemployment taxes, state unemployment taxes. And employer deposits the taxes withheld from employee's checks for federal and state withholding. Employer does not PAY employee's federal and state taxes. Only withholds from paycheck and sends to the appropriate place.
Payroll tax entries(accounting)?
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2% ; federal unemployment, 0.8% social security tax and Medicare tax together make up FICA taxes. FICA taxes = ($600,000 x 6.0%) + ($740,000 x 1.5%) = $36,000 + $11,100 = 47,100 state unemployment tax = $20,000 x 4.2% = $840 federal unemployment tax = $20,000 x 0.8% = $160 Total payroll taxes = $47,100 + $840 + $160 = $48,100 b. journalize the entry to record the accrual of payroll taxes Dr FICA expense $47,100 Dr Federal unemployment tax $160 Dr State unemployment tax $840 Cr FICA tax payable $47,100 Cr Federal unemployment tax payable $160 Cr State unemployment tax payable $840
How to determine unemployment compensation taxable earnings for employers?
I'm struggling a little bit with this in my accounting class right now and my prof is...dunce, to say the least. I've tried rewording my question a few times, i've tried illustrating my question, and all she does is recite exactly what the book says. Well, i've read this part of the chapter 3 times, i know exactly what the book says...the problem is is that the book does a crap job of explaining what i'm asking too. I know how to figure out what the employer has to pay in for FUTA and SUTA once you have how much unemployment was taxable, but i'm not sure how to figure out the taxable unemployment. So i'm going to give a fake payroll and hopefully someone can explain it to me. Carlson -- Cumulative Pay Before Current Earnings = $6,635 and the Current Gross Pay = $950 Delgado -- Cumulative = $6,150 and Current = $1,215 Lewis -- Cumulative = $54,375 and Current =$2,415 Nixon -- Cumulative = $53,870 and Current = $1,750 Shippe -- $24,830 and Current = $1,450 Watts -- Cumulative = $105,400 and Current = $2,120 Taxable Unemployment Compensation is $1,215. What i'm asking is how to determine from the payroll that i've listed above that the taxable unemployment is $1,215 Any help would be greatly appreciated
California SUTA and FUTA?
Hello, I am trying to find out how to calculate FUTA and SUTA for employees in California. I know that as the employer, I am completely liable to pay for both SUTA and FUTA. I want to know the FUTA and SUTA rates for my company. I don't understand how the concept works. I understand that there is a credit of 5.4% which reduces the FUTA rate to 0.8%. But what if the SUTA rate is less than 5.4%? Does this mean the FUTA rate decreases by the rate of SUTA, and not by 5.4%? Thanks :)
I’ve been working as a 1099 but I didn’t know that I had to pay quarterly taxes, and missed the June deadline. What should I do?
The reason that you pay taxes quarterly is to avoid an underpayment penalty when you file your return in April of 2015. You pay an underpayment penalty if the total of your withheld taxes and timely quarterly tax payments is less than both 90% of your total tax bill for 2014, and 100% of what you paid in 2013. If your total tax owed when you file your return is less than $1000, you owe no penalty.Because you are already late for June, it does not matter whether or not you make a payment now; it will not be credited against the penalty. The penalty is computed separately for each quarter, and is based on timely payments of estimated tax.Your goal now should be to reduce your total amount due at the end of the year below $1000; that will eliminate the penalty entirely. For that, you need to get a good picture of what you are likely to owe in taxes at the end of the year based on your current earnings from self-employment, and schedule your payments in September and January accordingly.As a self-employed person, realize that you are running a business, and that you can deduct expenses that you incur related to the generation of your self-employment income. A good tax professional can help you identify expenses you can claim that will recur your taxable income and help you meet the $1000 target, and I strongly suggest that you seek one out in your area.