Question

Ted Carman worked for Rivertide Country Club and earned $28,500 during the year. He also worked part time for Harrison Furniture Company and earned $12,400 during the year. The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000, and the rate for Harrison Furniture Company is 5.1% on the first $8,000. Calculate the FUTA and SUTA taxes paid by the employers on Carman's earnings.

Answer 1

Rivertide Company

FUTA Tax paid

= 7,000 * 0.6%

= $42

SUTA Tax paid

= 8,000 * 4.2%

= $336

Harrison Furniture Company

FUTA Tax paid;

= 7,000 * 0.6%

= $42

SUTA Tax paid

= 8,000 * 5.1%

= $408