Deschutes Companies located in Oregon has a SUTA tax rate of 4.10% and a wage base of $35,000.During the last calendar year the company paid $393,750 in wages and salaries for 11 employees.What is the total of the FUTA and SUTA tax liabilities for Deschutes Companies? (Assume that all employees have exceeded the FUTA and SUTA wage bases.)

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Quizplus · Accepted Answer

The SUTA tax liability is calculated as 4.10% of the wage base ($35,000) for each of the 11 employees, which equals $15,785. The FUTA tax rate is typically 0.6% on the first $7,000 of wages per employee, but since the problem states all employees have exceeded the wage bases, we only consider SUTA. Therefore, the total liability is $15,785.

Deschutes Companies Located in Oregon Has a SUTA Tax Rate