The current 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. Assume that an employee earned total wages of $2,900 in the current period and had cumulative pay for prior periods of $5,800. What is the amount of unemployment taxes the employer must pay on this employee's wages for the current period?

Question

Alan Murillo

Business

7 September, 09:24

The current 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. Assume that an employee earned total wages of $2,900 in the current period and had cumulative pay for prior periods of $5,800. What is the amount of unemployment taxes the employer must pay on this employee's wages for the current period?

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Kayden Booth · Answer 1

The amount of unemployment taxes the employer must pay on this employee's wages for the current period is $72.00

Explanation:

Amount of unemployment taxes

= FUTA tax + SUTA tax

= ($7000 - $5800) * 0.6% + ($7000 - $5800) * 5.4%

= $7.20 + $64.80

= $72.00

Therefore, The amount of unemployment taxes the employer must pay on this employee's wages for the current period is $72.00