Assume the FUTA tax rate is 0.6% and the SUTA tax rateis 5.4%. Both taxes are applied to the first $7,000 of anemployee’s pay. What is the total unemployment tax anemployer must pay on an employee’s annual wages of$40,000? a. $2,400 b. $420 c. $42 d. $378 e. $0; employee’s wages exceed the $7,000 maximum.
Assume the FUTA tax rate is 0.6% and the SUTA tax rateis 5.4%. Both taxes are applied to the first $7,000 of anemployee’s pay. What is the total unemployment tax anemployer must pay on an employee’s annual wages of$40,000? a. $2,400 b. $420 c. $42 d. $378 e. $0; employee’s wages exceed the $7,000 maximum.
Chapter5: Unemployment Compensation Taxes
Section: Chapter Questions
Problem 11PA
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Question
Assume the FUTA tax rate is 0.6% and the SUTA tax rate
is 5.4%. Both taxes are applied to the first $7,000 of an
employee’s pay. What is the total
employer must pay on an employee’s annual wages of
$40,000? a. $2,400
b. $420
c. $42
d. $378
e. $0; employee’s wages exceed the $7,000 maximum.
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