# Math

posted by .

Vince earned \$32,876 last year. The state unemployment tax paid by his employer is 5.4% of the first \$7,000 earned in a year. How much SUTA tax must Vince’s employer pay for him? How much FUTA tax must Vince’s employer pay?

• Math -

SUTA tax (5.4% for first \$7000)
=7000*0.054
=\$378

Equivalent FUTA tax rates are different from state to state because of possible credit reductions.
Same goes for the FUTA tax base.
Assuming the FUTA tax base is \$7000, and that there is no credit reduction, the effective FUTA rate is 0.6%, and the FUTA tax the employer must pay is therefore 0.6%*7000=\$42.

Do check up on the State and FUTA rules for the last part of the answer.

## Respond to this Question

 First Name School Subject Your Answer

## Similar Questions

1. ### accounting please help

Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of \$8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the …
2. ### accounting

Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of \$8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the …
3. ### math

Universal Exporting has three warehouse employees: John Abner earns \$422 per week, Anne Clark earns \$510 per week, and Todd Corbin earns \$695 per week. The company’s SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. …
4. ### math

Universal Exporting has three warehouse employees: John Abner earns \$422 per week, Anne Clark earns \$510 per week, and Todd Corbin earns \$695 per week. The company’s SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. …
5. ### math

Universal Exporting has three warehouse employees: John Abner earns \$422 per week, Anne Clark earns \$510 per week, and Todd Corbin earns \$695 per week. The company’s SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. …
6. ### math

Universal Exporting has three warehouse employees: John Abner earns \$422 per week, Anne Clark earns \$510 per week, and Todd Corbin earns \$695 per week. The company’s SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. …
7. ### Business Math

Universal Exporting has three warehouse employees: John Abner earns \$422 per week, Anne Clark earns \$510 per week, and Todd Corbin earns \$695 per week. The company’s SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. …
8. ### math

11. Universal Exporting has three warehouse employees: John Abner earns \$422 per week, Anne Clark earns \$510 per week, and Todd Corbin earns \$695 per week. The company’s SUTA tax rate is 5.4%, and the FUTA rate is 6.2% minus the …
9. ### accounting

Amazon Appliance Company has three installers. Larry earns \$355 per week, Curly earns \$460 per week, and Moe earns \$585 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.2% minus the SUTA. As usual, these taxes are …
10. ### English

Cary and Vince are discussing titles for their essays. In developing a good title, Cary will create a title using alliteration. Vince will use a vague, broad title. Who is using a better strategy to develop a good essay title?

More Similar Questions