An appliance company has three installers. Larry earns $395 per week, Curly earns $490 per week, and Moe earns $595per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid onthe first $7,000 of each employee's earnings.(a) How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year?total SUTA tax$ 1134total FUTA tax$126XX

FUTA stands for Federal Unemployment Tax Act, which was established in 1939 to fund unemployment…

Answered: An appliance company has thre

Business

Accounting

An appliance company has thre

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 2E

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Question

An appliance company has three installers. Larry earns $395 per week, Curly earns $490 per week, and Moe earns $595
per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on
the first $7,000 of each employee's earnings.
(a) How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year?
total SUTA tax
$ 1134
total FUTA tax
$126
X
X

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