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

D. $850.64; $91.14

Explanation:

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

So for 1 quarter, he will pay :

`13*160` = $2080

`13*470` = $6110

`13*800` = $10400

Given is that the base is $7,000.

It implies that the unemployment rate is to be paid on the first $7000 only.

Given rates are :

State rate of 5.6% and a federal rate of 0.6%.

State unemployment =
`(0.056*2080)+(0.056*6110)+(0.056*7000)` = $850.64

Federal unemployment =
`(0.006*2080)+ (0.006*6110)+ (0.006*7000)` = $91.14

So, the correct option is D.