# Math

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?

1. 👍 0
2. 👎 0
3. 👁 102
1. 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.

1. 👍 0
2. 👎 0

## Similar Questions

1. ### fundamentals of accounting 1

journalizing payroll transactions, for Keller Systems;Inc, paid cash for april's payroll tax liability. withheld taxes from april payrolls; employee income tax,\$532.00; social security tax,\$634.88; and medicare tax,\$148.48. paid

asked by mel on October 14, 2013
2. ### accounting 1

help with journalizing payroll transactions and filling on the cash payments journal, may 15, paid cash for april's payroll tax liability. withheld taxes from april payrolls; employee income tax,\$532.00; social security

asked by mel on October 14, 2013
3. ### accounting 1

help with journalizing payroll transactions and filling on the cash payments journal, may 15, paid cash for april's payroll tax liability. withheld taxes from april payrolls; employee income tax,\$532.00; social security

asked by mel on October 14, 2013
4. ### Accounting

Louis Welch is general manager of United Salons. During 2014, Welch worked for the company all year at a \$10,200 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. Welch’s federal income tax

asked by Anonymous on April 27, 2015
5. ### Accounting 2

Journalizing liability transaction. The following transactions of denver pharmacies occurred during 2011 and 2012. Louis Welch is general manager of United Tanning Salons. During 2012, Welch worked for the company all year at a

asked by Kevin on June 23, 2012
1. ### math check

1.)Jenna earns \$16,250 per year. She pays 6% of her earnings to her pension fund. Her health insurance costs \$81.50 per month and she has \$55 taken from her monthly paycheck for savings. What are her total deductions for the year?

asked by Ariel on September 16, 2010
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

asked by ann on April 28, 2013
3. ### payroll accounting

4. First Case Manufacturing Company has annual payroll of \$100,000. Voluntary contribution are allowed in the State where this company does business. Total unemployment taxes paid into the State’s unemployment fund amounts to

asked by Jennifer on July 14, 2010