John Rose, owner of Rose Corporation, has three employees who earn $500, $600, and $700, respectively. After 12 weeks how much has John contributed for state and federal unemployment? Assume a state rate of 5.4% and a federal rate of .6%.

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Quizplus · Accepted Answer

Worker 1 pay: 12 × $500 = $6,000; Worker 2 pay: 12 × $600 = $7,200 ($200 exempt); Worker 3 pay: 12 × $700 = $8,400 ($1,400 exempt); Total Pay - Total Exempt = 6,000 + 7,200 + 8,400 - 200 - 1,400 = $20,000; SUTA = 20,000 × .054 = $1,080; FUTA = 20,000 × .006 = $120

John Rose, Owner of Rose Corporation, Has Three Employees Who