An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?

Question

Quizplus · Accepted Answer

Unemployment taxes (FUTA and SUTA) are paid by the employer, not the employee. Therefore, the employee does not pay any unemployment taxes.

An Employee Earned $62,500 During the Year Working for an Employer