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Narrative 9-2
Use the Information Below to Solve the Following

Question 109

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Narrative 9-2
Use the information below to solve the following problems:
 Tax Rate  Wage Base  Social security 6.2%$128,400 Medicare 1.45% no limit  FUTA .6%$7,000 SUTA 5.4%$7,000\begin{array} { l l l } & \text { Tax Rate } & \text { Wage Base } \\\text { Social security } & 6.2 \% & \$ 128,400 \\\text { Medicare } & 1.45 \% & \text { no limit } \\\text { FUTA } & .6 \% & \$ 7,000 \\\text { SUTA } & 5.4 \% & \$ 7,000\end{array}
-Refer to Narrative in your text 9-2. Michael Johns worked part time last year as a clerk in a convenience store. His total gross earnings were $6,840.00.
A)How much SUTA tax must the store pay to the state for Michael?
B)How much FUTA tax must the store pay for Michael?

Correct Answer:

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a.$369.36
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