Mary Gonzalez had total cumulative gross earnings of $4,500 as of 1/30.Her gross earnings for the pay period ending 2/15 were $3,000.If federal unemployment taxes are .6% on a maximum earnings of $7,000 per year,how much federal unemployment tax will be paid by Mary and how much will be paid by her employer for her earnings of 2/15?

Question

Quizplus · Accepted Answer

Federal unemployment tax is paid by the employer, not the employee. The tax is 0.6% on the first $7,000 of earnings. Mary's cumulative earnings after 2/15 are $7,500 ($4,500 + $3,000), but only $2,500 of the $3,000 is subject to the tax (since $4,500 + $2,500 = $7,000). Therefore, the employer pays 0.6% of $2,500, which is $15.

Mary Gonzalez Had Total Cumulative Gross Earnings of $4,500 as of 1/30.Her