Given the following, calculate the state (assume 5.3%) and federal unemployment

Question

Given the following, calculate the state (assume 5.3%) and federal unemployment taxes that the employer must pay for each of the first two quarters. The federal unemployment tax is 0.8% on the first $8,200.

PAYROLL SUMMARY

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Quarter 1 Quarter 2
Bill Adams $ 5,200 $ 9,200
Rich Haines 9,200 15,200
Alice Smooth 3,800 4,400



PAYROLL SUMMARY

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Quarter 1 Quarter 2
Totals $ $ __________ __________
SUTA $ $ _________ _________
FUTA $ $ ________ __________

Explanation / Answer

SUTA : For Q1: 0.053*(5200+9200+3800) = 0.053*18200 = $ 964.60 For Q2: 0.053*(9200+15200+4400) = 0.053*28800 = 1526.40 Total SUTA = 964.60+1526.40 = $2491 FUTA: For Q1: (0.008*8200) +( ???)*(18200-8200) = For Q2: (0.008*8200) + (???)*(28800-8200) = Total FUTA = sum of two values you will find above. I am not able to work out the final nimbers because you have not mentioned the FUTA rate for the amount above $ 8200. You will have to find that rate and substitute where I have put the question marks and then calculate those values and then add final numbers to get total FUTA. Hope this helps.

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