Question

An employee earns $61,800 during the year working for an employer. Calculate the total unemployment taxes the employee must pay. (Round to the nearest dollar.)

A. $405
B. $459
C. $554
D. $581

Answer 1

The total unemployment taxes the employee must pay is $3,708.

Step-by-step explanation:

The employee will have to pay unemployment taxes based on their wages. The federal government requires tax collection on the first $7,000 in wages paid to each worker. Let's calculate the unemployment taxes for this employee:

Wages = $61,800

Tax rate = 6%

Tax amount = Wages * Tax rate

Tax amount = $61,800 * 0.06

Tax amount = $3,708

Rounded to the nearest dollar, the total unemployment taxes the employee must pay is $3,708. Therefore, the correct answer is D. $581.