Taurus's gross pay for the week is $980. His yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6.2%, and that Taurus's pay year-to-date has previously exceeded the $7,000 cap. How much is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state governments?

Question

Quizplus · Accepted Answer

Since Taurus's pay year-to-date has already exceeded the $7,000 cap for unemployment taxes, no additional state and federal unemployment taxes are due for this week.

Taurus's Gross Pay for the Week Is $980