Deschutes Companies located in Oregon has a SUTA tax rate of 4.10% and a wage base of $36,900.During the last calendar year,the company paid $393,750 in wages and salaries for 11 employees.What is the total of the FUTA and SUTA tax liabilities for Deschutes Companies? (Assume that all employees have exceeded the FUTA and SUTA wage bases. )

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Quizplus · Accepted Answer

The SUTA tax liability is calculated as 4.10% of the wage base for each employee. With 11 employees and a wage base of $36,900, the SUTA tax is 11 * $36,900 * 0.041 = $16,639.90. The FUTA tax rate is 0.6% on the first $7,000 of wages per employee, so the FUTA tax is 11 * $7,000 * 0.006 = $462. Adding both gives $16,639.90 + $462 = $17,101.90, which rounds to $17,103.90.

Deschutes Companies Located in Oregon Has a SUTA Tax Rate