Sven Trent has cumulative earnings of $6,580 and earned $840 during the current payroll period. If the SUTA tax is 5.4 percent, with a ceiling of $7,000, the employer liability for state unemployment taxes is

Question

Quizplus · Accepted Answer

Sven's cumulative earnings before the current period are $6,580. Adding the current period earnings of $840 brings the total to $7,420. However, the SUTA tax applies only up to the ceiling of $7,000. Therefore, the taxable amount for this period is $7,000 - $6,580 = $420. The employer liability is 5.4% of $420, which is $22.68.

Sven Trent Has Cumulative Earnings of $6,580 and Earned $840