Sam's earnings during the month of June were $1,700. His earnings for the year prior to June were $15,300. Sam's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.6% on the first $7,000. The employer's unemployment payroll tax expense for June is:

Question

Quizplus · Accepted Answer

Sam's earnings for the year prior to June were $15,300, which means by June, he had already exceeded the $7,000 threshold for both state and federal unemployment taxes. Therefore, his employer would not owe any additional unemployment taxes for his earnings in June.

Sam's Earnings During the Month of June Were $1,700