Employee SUTA Contributions

Some states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different than an employer's... taxable wages (those under the cap) times the state rate for employees.

Let's investigate an individual that lives in New Jersey, whose monthly wages equal $1,725.

1. 	Description		Calculation
   1.	Looking at the chart, in the Employee column, it provides the employee withholding rate (.705% in New Jersey) and the withholding taxable wage cap ($33,700 in New Jersey).
   2.	Taxable wages		$1,725
   3.	New Jersey employee rate		0.705%
   4.	Employee SUTA tax, rounded to the nearest cent		$12.16

Give It A Try

Using the amalgamated State SUTA chart, complete the following.

Note: Round all amounts to the nearest cent.

Rob Wiley lives in California and has wages of $632.00 per week.

Employee: Rob Wiley	State: California
Taxable wage cap	$
SUTA tax	%
Total unemployment tax