Asked by Morgan Crouse on Jun 24, 2024
Verified
Smith Gym employed Garcia Young for 20 weeks during the first quarter of the year. Her salary was $500 per week. Compute the FUTA and SUTA taxes Smith Gym must pay on Young's wages for the quarter, assuming that the state rate was 5.6%?
FUTA
The Federal Unemployment Tax Act, legislation that funds unemployment compensation programs in the United States.
SUTA
State Unemployment Tax Act, a payroll tax paid by employers to fund state unemployment insurance programs.
State Rate
A specific rate established by individual states, often used in reference to taxes, fees, or interest applicable within that state.
- Compute the financial obligation of employers for Federal Unemployment Tax Act and State Unemployment Tax Act taxes, using specified salary data and regional rates.
- Execute precise tax computations on payroll for each employee and the aggregate wages distributed by the corporation.
Verified Answer
JS
Jagteshwar SinghJun 29, 2024
Final Answer :
$448
$500 per week 20 weeks = $10,000 total wages
$7,000 maximum 0.008 = $56 FUTA
$7,000 maximum 0.056 = $392 SUTA
$56 + $392 = $448 total unemployment taxes
$448
$500 per week 20 weeks = $10,000 total wages
$7,000 maximum 0.008 = $56 FUTA
$7,000 maximum 0.056 = $392 SUTA
$56 + $392 = $448 total unemployment taxes
Learning Objectives
- Compute the financial obligation of employers for Federal Unemployment Tax Act and State Unemployment Tax Act taxes, using specified salary data and regional rates.
- Execute precise tax computations on payroll for each employee and the aggregate wages distributed by the corporation.