roger has three employees who earn $500, $550, and $700, respectively. How much does roger owe for SUTA and FUTA in the first 12 weeks? Assume a SUTA rate of $5.3% and a FUTA rate after the company's credit for state unemployment tax of .8%.
Are the salaries per week, months or the whole 12 weeks?
To calculate how much Roger owes for SUTA (State Unemployment Tax) and FUTA (Federal Unemployment Tax) in the first 12 weeks, you need to follow these steps:
Step 1: Calculate the total wages paid to the employees in the first 12 weeks.
To do this, add up the earnings of each employee:
$500 + $550 + $700 = $1750
Step 2: Calculate the SUTA amount.
SUTA is calculated as a percentage of the total wages paid.
The SUTA rate given is 5.3%, so multiply the total wages by 0.053 to find the SUTA amount:
$1750 * 0.053 = $92.75
Step 3: Calculate the FUTA amount.
FUTA is also calculated as a percentage of the total wages paid. However, there is a credit for state unemployment tax. To determine the FUTA rate after the credit, subtract the credit rate from 1.
1 - 0.008 = 0.992
Now, multiply the total wages by the adjusted FUTA rate to find the FUTA amount:
$1750 * 0.992 = $1736
Thus, Roger owes $92.75 for SUTA and $1736 for FUTA in the first 12 weeks.