The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are

Question

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $6,000 of an employee's pay. Assume that an employee earned total wages of $11,100. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

A.) $688.20.

B.) $0.00.

C.) $599.40.

D.) $88.80.

E.) $372.00.

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $6,000 of an employee's pay. Assume that an employee earned total wages of $11,100. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

Explanation / Answer

6000 * 0.8% + 6000 * 5.4%

= 48 + 324

= 372 (E)

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