Question

Aaron norman earned $24,900 for the year from marcus company. the company is subject to a suta tax of 4.7% on the first $9,900 of earnings. determine: (round your answers to two decimal places, if necessary.)

a. the employer's futa tax on norman's earnings $ .

b. the employer's suta tax on norman's earnings $ .

Answer 1

Answer:

To calculate the Federal Unemployment Tax Act (FUTA) taxes that the employer must pay we have to multiply Aaron's salary times FUTA tax rate:

$24,900 x 0.6% = $149.40

To calculate the State Unemployment Tax Act (SUTA) taxes that the employer must pay we have to multiply Aaron's salary times SUTA tax rate:

$9,900 x 4.7% = $465.30