Question

hat would the FUTA and SUTA tax be for an employee whose year-to-date earnings prior to the current period are $12,400, who earns $1,500 during the current period, who works in a state with a credit reduction of 0.6%, and whose state imposes a SUTA tax rate of 2.5% with an associated wage base of $12,600?

Answer 1

FUTA = $9 and SUTA = $37.5

Step-by-step explanation:

given data

earnings prior = $12,400

earns = $1,500

credit reduction = 0.6%

tax rate = 2.5%

solution

so we know that up to $7000 the employer has to pay FUTA

and here salaries and wages earned = $1500

so FUTA will be paid = 0.6% of $1500

FUTA = $9

so

SUTA will be = 2.5% of $1500

SUTA = $37.5

so

FUTA = $9 and SUTA = $37.5