Question

Aaron norman earned $24,900 for the year from marcus company. the company is subject to a suta tax of 4.7% on the first $9,900 of earnings. determine: (round your answers to two decimal places, if necessary.)

a. the employer's futa tax on norman's earnings $ .

b. the employer's suta tax on norman's earnings $ .

Answer 1

The employer's SUTA tax on Aaron Norman's earnings is $465.30, calculated by multiplying the first $9,900 of his earnings by 4.7%. The FUTA tax calculation requires the specific FUTA tax rate and taxable wage base, which are not provided in the question.

Step-by-step explanation:

The student's question is focused on calculating the Federal Unemployment Tax Act (FUTA) and State Unemployment Tax Act (SUTA) taxes that an employer must pay on behalf of their employee, Aaron Norman, who earned $24,900 for the year from Marcus Company. The company is required to pay a SUTA tax rate of 4.7% on the first $9,900 of Aaron's earnings.

To calculate the employer's SUTA tax on Norman's earnings:

• Identify the amount of earnings subject to SUTA, which is $9,900.
• Multiply $9,900 by the SUTA tax rate of 4.7%.
• The result is the SUTA tax the employer owes: 9900 * 0.047 = $465.30.

To calculate the employer's FUTA tax on Norman's earnings, you would normally follow a similar process, using the FUTA tax rate and the taxable wage base. However, the student must provide the FUTA tax rate and wage base limit to conduct the calculation accurately.

Answer 2

To calculate the Federal Unemployment Tax Act (FUTA) taxes that the employer must pay we have to multiply Aaron's salary times FUTA tax rate:

$24,900 x 0.6% = $149.40

To calculate the State Unemployment Tax Act (SUTA) taxes that the employer must pay we have to multiply Aaron's salary times SUTA tax rate:

$9,900 x 4.7% = $465.30