rate. The company would pay unemployment taxes.
FUTA $215,600 × 0.006 = $1,293.60
SUTA $255,700 x 0.056 = 14,319.20
Total taxes $15,612.80
2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the
first $12,000 of each employee's earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this
week's pay. The unemployment taxes that the company must pay for this week's pay would be $48.
FUTA tax (both over $7,000)=$0.00
SUTA tax ($1,000 × 0.048) $48.00
($500 of each employee's pay is under the state taxable limit of $12,000)
Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had
FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute:
Round your answers to the nearest cent.
a. Net FUTA tax
b. Net SUTA tax
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