Answer: $68.90 for each quarter
Explanation:
To calculate the state and federal unemployment taxes that Paula will pay, we need to first calculate the taxable wages for each employee and then apply the appropriate tax rates.
For Quarter 1:
Employee 1's taxable wages: $410
Employee 2's taxable wages: $650
Total taxable wages: $410 + $650 = $1,060
State unemployment tax:
Taxable wage base for the state: $9,000 per employee per year
Taxable wage base for two employees in a quarter: $18,000
Tax rate: 5.9%
State unemployment tax: $1,060 x 5.9% = $62.54
Federal unemployment tax:
Taxable wage base for the federal government: $7,000 per employee per year
Taxable wage base for two employees in a quarter: $14,000
Tax rate: 0.6%
Federal unemployment tax: $1,060 x 0.6% = $6.36
Therefore, Paula will pay a total of $62.54 + $6.36 = $68.90 in state and federal unemployment taxes for Quarter 1.
For Quarter 2:
Employee 1's taxable wages: $410
Employee 2's taxable wages: $650
Total taxable wages: $410 + $650 = $1,060
State unemployment tax:
Taxable wage base for the state: $9,000 per employee per year
Taxable wage base for two employees in a quarter: $18,000
Tax rate: 5.9%
State unemployment tax: $1,060 x 5.9% = $62.54
Federal unemployment tax:
Taxable wage base for the federal government: $7,000 per employee per year
Taxable wage base for two employees in a quarter: $14,000
Tax rate: 0.6%
Federal unemployment tax: $1,060 x 0.6% = $6.36
Therefore, Paula will pay a total of $62.54 + $6.36 = $68.90 in state and federal unemployment taxes for Quarter 2 as well.