Kate's earnings during the month of May were $1,200.Her earnings for the year prior to May were $12,300.Kate's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000.The employer's unemployment payroll tax expense for May is:

Question

Quizplus · Accepted Answer

Kate has already earned $12,300 before May, which exceeds the $7,000 limit for unemployment taxes. Therefore, no additional unemployment taxes are due for May.

Kate's Earnings During the Month of May Were $1,200