Question

James smith earned $11,486 last year. his​ employer's suta tax rate is 5.4% of the first $7000. how much suta tax must​ james's employer pay for​ him?

Answer 1

James Smith's employer is required to pay a SUTA tax of 5.4% on the first $7,000 of his earnings, which amounts to $378.

Step-by-step explanation:

James Smith's employer must pay a SUTA tax of 5.4% on the first $7,000 of his earnings. Since James earned $11,486, the calculation is based only on $7,000, as this is the SUTA tax wage base limit.

To calculate the SUTA tax:
5.4% of $7,000 = (0.054) x (7000) = $378.

Therefore, the total SUTA tax that the employer must pay for James is $378.