The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both taxes are applied to the first $7,000 of an employee's pay.Assume that an employee earned total wages of $9,900.What is the amount of total unemployment taxes the employer must pay on this employee's wages?

Question

Quizplus · Accepted Answer

The total unemployment taxes are calculated on the first $7,000 of wages. FUTA tax is 0.6% of $7,000, which is $42. SUTA tax is 5.4% of $7,000, which is $378. The total is $42 + $378 = $420.

The Current FUTA Tax Rate Is 0