Question

. Joyce Meadow pays her three workers $160, $470, and $800, respectively, per week. Calculate what Joyce will pay at the end of the first quarter for (A) state unemployment and (B) federal unemployment. Assume a state rate of 5.6% and a federal rate of .6%. Base is $7,000. A. $950.64; $67.14 B. $655.64; $97.14 C. $755.64; $81.14 D. $850.64; $91.14

Answer 1

Option D. $850.64; $91.14

Explanation:

Joyce Meadow pays her three workers per week $160, $470 and $800 respectively.

A year has 52 weeks, Therefore quarter has
`(52)/(4)` = 13 weeks.

So for a quarter she pays = 160 × 13 = $2,080, 470 × 13 = $6,110, 800 × 13 = $10,400

State rate is 5.6%

Federal rate is 0.6%

Base is $7,000

It means the unemployment needs to be paid on the first $7000 only

So the state unemployment = (0.056 × 2,080) + (0.056 × 6,110) + (0.056 × 7,000)

= 116.48 + 342.16 + 392 = $850.64

Federal unemployment = (0.006 × 2,080) + (0.006 × 6,110) + (0.006 × 7,000)

= 12.48 + 36.66 + 42 = $91.14

Option D. is the correct answer.