Question
Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers. The partnership of Keenan and Kludlow paid the
Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.
The partnership of Keenan and Kludlow paid the following wages during this year:
| M. Keenan (partner) | $85,500 |
| S. Kludlow (partner) | 76,000 |
| N. Perry (supervisor) | 55,200 |
| T. Lee (factory worker) | 34,400 |
| R. Rolf (factory worker) | 26,400 |
| D. Broch (factory worker) | 6,500 |
| S. Ruiz (bookkeeper) | 25,900 |
| C. Rudolph (maintenance) | 5,200 |
In addition, the partnership owed $350 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following:
Round your answers to the nearest cent.
a. Net FUTA tax for the partnership for this year $
b. SUTA tax for this year $
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