Paula Ryan pays her two employees $410 and $650 per week. Assume a state unemployment rate of 5.4% and a federal rate of .6%. What state and federal unemployment tax will Paula pay at the end of Quarter 1 and Quarter 2?

Question

Quizplus · Accepted Answer

Quarter 1: 13 × 410 = 5,330; 13 × 650 = 8,450 (1,450 is exempt); Taxable Quarter 1: 5,330 + 7,000 = 12,330; SUTA: 12,330 × .006 = $73.98; FUTA = 12,330 × .054 = $665.82; Quarter 2: 7,000 - 5,330 = 1,670 = only part taxable in quarter 2; SUTA = 1,670 × .006 = $10.02; FUTA = 1,670 × .054 = $90.18

Paula Ryan Pays Her Two Employees $410 and $650 Per