Ask Question
24 October, 23:16

Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemployment tax rate of 0.6%. What state and federal unemployment taxes will Jean pay at the end of quarter 1 and quarter 2

+1
Answers (1)
  1. 24 October, 23:33
    0
    The quarter has 3 months so all 15 weeks shall have following taxes:

    Employee Wages Exempt under FUTA or SUTA

    Employee 1

    Wages = 15 week x 900 = 13.500

    Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500

    Employee 2

    Wages = 15 week x 1200 = 18.000

    Exempt under FUTA or SUTA = 18.000 - 7,000 = 11000

    From the above table.

    The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,

    Employee I is paid, 900 x 15 weeks

    = 13,500

    Employee 2 is paid, 1200 x 15 weeks

    = I 8,000

    For employee 1,

    = 13,500 - 7,000

    Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500

    For employee 2,

    =18,000 - 7000

    Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee = 11000

    The taxable wages are obtained by deducting.

    = (13,500 + 18000) - (6,500 + 11,000)

    = 31500 - 17500

    = 14000

    The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,

    0.057 x 14,000 = $798

    FUTA.

    0.008 x 14000

    = $112

    Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemployment tax ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers