Question

The SUTA rate for Thomson Temp Agency is 5.4% and its FUTA rate is 6% less...

The SUTA rate for Thomson Temp Agency is 5.4% and its FUTA rate is 6% less the 5.4% SUTA credit.

If its semimonthly payroll is $133,320 and none was for payments to employees in excess of the $7,000 wage base, then what are the total FUTA and SUTA taxes (in $) for the payroll?

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Answer #1

Based on the information available in the question, we can answer as follows:-

State Unemployment Taxes(SUTA) - $133,320 * 5.4%. = $7,199(Rounded)

Fedual Unemployment taxes(FUTA) - $133,320 * 6% = $7,999

Less:- Credit for SUTA = $7,199

Federal Unemployment taxes (FUTA) = $7,999 - $7,199 = $800

Federal Unemployment taxes (FUTA) = $800

Based on the above calculation, the answer is :-

State Unemployment taxes = $7,199

Federal Unemployment taxes = $800

Please let me know if you have any questions via comments and all the best :) !

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