   Chapter 9, Problem 21AT ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Tim Ries earns $48,320 annually as a supervisor for the Lakeside Bank.a. If the SUTA tax rate is 5.4 % of the first$7,000 earned in a year, how much SUTA tax must the bank pay each year for Tim?b. If the FUTA tax rate is 6.0% of the first $7,000 earned in a year minus the SUTA tax paid, how much FUTA tax must the bank pay each year for Tim? (a) To determine To calculate: The SUTA tax that the bank must pay for Tim, where Tim earns$48,320 and the rate of SUTA is 5.4% for first $7,000 earned in a year. Explanation Given Information: Tim earns$48,320 and the rate of SUTA is 5.4% for first $7,000 earned in a year. Formula used: The SUTA tax is given as, SUTA tax=Gross earning×SUTA tax rate Calculation: Consider the given information, the rate of SUTA is 5.4% for first$7,000 earned in a year

(b)

To determine

To calculate: The FUTA tax that the bank must pay annually for Tim, if Tim earns $48,320 and the rate of FUTA is 6.0% for first$7,000 earned in a year minus the SUTA tax paid.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### Find more solutions based on key concepts 