PSa 5-3 Calculate FUTA Tax

For each of the following independent circumstances, calculate the FUTA tax owed by the employer:

NOTE:For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:

An employer in Albany, New York, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $8,100 and $6,200. During the current pay period, these employees earn $850 and $1,490, respectively.

FUTA tax = $

2:

An employer in Bloomington, Illinois, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $51,500, $32,420, and $7,550. During the current pay period, these employees earn $1,820, $2,310, and $770, respectively.

FUTA tax = $

3:

An employer in the U.S. Virgin Islands employs two individuals, whose taxable earnings to date (prior to the current pay period) are $920, and $5,150. During the current pay period, these employees earn $2,100 and $2,910, respectively.

FUTA tax = $

4:

An employer in Essex, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $7,000, $6,100, and $9,400. During the current pay period, these employees earn $650, $980, and $1,100, respectively.

FUTA tax =