Question

Hollywood Stars of Vermont (HSV) provides services to the movie industry. FUTA wages are $16,619.58. Taxable SUTA wages are $20,312.82 on the first $ and experience rating is 5.4%. Clark Gable has worked for HSV for over 5 years and earns $923.31 per week.

Compute both Hollywood Stars of Vermont' total unemployment tax and, if applicable, the amount that would be withheld from Clark Gable's weekly paycheck.

Answer 1

FUTA Wages - $ 16619.58

SUTA Wages- $20312.82

Experience Rating= 5.4%

Clark Gable has worked for HSV for over 5 years and earns $923.31 per week.

Calculation:

In this sum We are Considering 5.4& rate for both FUTA & SUTA as no Individual Rates are given,

1)HSV Total Unemployment Tax=

FUTA - 16619.58*5.4% =897.46

SUTA - 20312.82*5.4%=1096.89

Total= FUTA+SUTA

= 897.46+1096.89

=$1994.35

2)Cleark Gamble Withheld Amt= 923.32 per week

Quarter- 923.32*13 = 12003.03

As per Law Employer Has to payfor first $7000/Employee

so 7000*5.4% = $378