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Business, 06.12.2019 07:31 alinegonzalez0027

As of june 30, 2018 (the computation date for the 2019 tax rate), amanda company had a negative balance of $1,015 in its unemployment reserve account in state a. the company's average payroll over the last three 12-month periods amounted to $525,000. the unemployment compensation law of state a provides that the tax rate of an employer who has a negative balance on the computation date shall be 7.2% during the following calendar year. using the tax rate schedule presented below, compute the following:
a. what is the smallest voluntary contribution that amanda co. should make in order to effect a change in its tax rate? that is, bring the reserve ratio to 0.0% or more, but less than 1.0% for a contribution rate of 6.7%.b. what is the amount of tax savings as a result of the voluntary contribution if amanda co.'s taxable payroll for 2013 is $650,000? i'm coming up with $1,015 for the first part, and a tax savings of $3,250 for the second part. am i correct?

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As of june 30, 2018 (the computation date for the 2019 tax rate), amanda company had a negative bala...

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