Question

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 5.6% and a federal rate of .8%.

Answer 1

$1,382

Explanation:

John Rose has three employees that earn in total: $1800.

The state rate is 5.6% and the federal state is 0.8%, which is a total of 6.4%.

Then the amount of money that John has contributed for state and federal unemployment is: 12× $1800 × 0.064 = $1,382.