Asked by Allison Bartley on Jun 22, 2024
Verified
Kelly Interiors employed Jason Baker for 13 weeks during the first quarter of the year. His salary was $680 per week. Compute the FUTA and SUTA taxes Kelly Interiors must pay on Baker's wages for the quarter, assuming that the state rate was 5.8%?
FUTA
The Federal Unemployment Tax Act, which imposes a payroll tax on businesses with employees to fund state workforce agencies.
SUTA
State Unemployment Tax Act; a type of payroll tax that employers pay to their state to fund the state's unemployment insurance program.
State Rate
Often refers to the interest rate or tax rate set by individual states, which can vary from one state to another.
- Determine the monetary responsibility of an employer regarding FUTA and SUTA taxes through the analysis of provided wage details and applicable state tariffs.
- Carry out accurate calculations of payroll taxes for individual workers and the overall salary payments made by the firm.
Verified Answer
KM
Karla Muñoz DueñasJun 27, 2024
Final Answer :
$462
$680 per week 13 weeks = $8,840 total wages
$7,000 maximum 0.008 = $56 FUTA
$7,000 maximum 0.058 = $406 SUTA
$56 + $406 = $462 total unemployment taxes
$680 per week 13 weeks = $8,840 total wages
$7,000 maximum 0.008 = $56 FUTA
$7,000 maximum 0.058 = $406 SUTA
$56 + $406 = $462 total unemployment taxes
Learning Objectives
- Determine the monetary responsibility of an employer regarding FUTA and SUTA taxes through the analysis of provided wage details and applicable state tariffs.
- Carry out accurate calculations of payroll taxes for individual workers and the overall salary payments made by the firm.