Final answer:
Calculating the figures on Form 940 for Quality Care Dry Cleaning involves assessing gross earnings, employees' exemption limits, and FUTA tax deposits. Specific line items on the form cannot be accurately calculated without additional information on the distribution of wages throughout the year.
Step-by-step explanation:
The student's question pertains to determining various figures for Quality Care Dry Cleaning's Form 940 related to Federal Unemployment Tax Act (FUTA) taxes. Given that the total gross earnings for the year are $355,600, we can approach each line item as follows:
- Line 3: Total payments to all employees would be the gross earnings, which is $355,600.00.
- Line 4: Payments exempt from FUTA tax. Since all employees earned more than the $7,000 FUTA exemption limit within the first quarter itself, and a new employee hired in the 4th quarter also earned $7,800, all payments would be exempt after the first $7,000 paid to each employee.
- Line 5: Total of payments made to each employee in excess of $7,000 is calculated by subtracting $7,000 for each employee from the total gross, then adding the wages of the new employee since they were hired after the first $7,000 had already been paid to existing employees.
- Line 7: Total taxable FUTA wages would be the first $7,000 paid to each employee during the year, not including any amounts above $7,000.
- Line 8: FUTA tax before adjustments is calculated at 0.6% of total taxable FUTA wages.
- Line 13: FUTA tax deposits for the year, including overpayment, is given as $420.00.
- Line 14: Balance due, if any, would be the difference between the FUTA tax before adjustments and the tax deposits for the year.
- Line 15: Overpayment is determined if the deposits exceed the FUTA tax before adjustments.
- Line 16 (a-d): These represent the FUTA tax liability for each quarter, which is dependent on the taxable FUTA wages paid in each respective quarter.
- Line 17: Total tax liability for the year would be the sum of the quarterly liabilities.
Note that specific dollar amounts cannot be provided without additional information on the quarterly wages paid. The figures for Lines 5, 7, 8, 14, 15, 16a-d, and 17 would need additional calculations based on the wages paid per quarter and the timing of the new hire's payments.