Example 5-7

Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are:

FUTA tax - $130,000 0.6%=$780SUTA tax - $210,000 0.9%=1,890Total unemployment taxes$2,670

During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $137,800. Compute:

Round your answers to the nearest cent.a.Net FUTA tax$fill in the blank 1

b.Net SUTA tax$fill in the blank 2

c.Total unemployment taxes