The last semimonthly payroll of Available Temp Services was $135,600.00 of gross wages for 113 employees. Of the total, none was for payments to employees in excess of the $7,000.00 wage base. What were the total FUTA and SUTA taxes for the payroll? The company's SUTA rate is 5.4% and its FUTA rate is 6.0% less the 5.4% SUTA credit.

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Quizplus · Accepted Answer

The FUTA tax rate is 0.6% (6.0% - 5.4% credit). The total FUTA and SUTA taxes are calculated on the $135,600.00 payroll. FUTA tax = $135,600 * 0.6% = $813.60. SUTA tax = $135,600 * 5.4% = $7,322.40. Total taxes = $813.60 + $7,322.40 = $8,136.00.

The Last Semimonthly Payroll of Available Temp Services Was $135,600