PSb 5-5 Calculate FUTA and SUTA Tax

For each of the following independent circumstances calculate both the FUTA and SUTA 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.

2: An employer in Bridgeport, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200. During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTA threshold is $15,000. FUTA tax = $ 4.20 (wrong) SUTA tax = $ 122.50 (wrong)

3: An employer in San Diego, California, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $1,420 and $6,600. During the current pay period, these employees earn $3,350 and $1,700, respectively. The applicable SUTA tax rate is 3%, and the California SUTA threshold is $7,000. FUTA tax = $22.50 (wrong) SUTA tax = $ 112.50 (correct)

4: An employer in Durham, North Carolina, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,000, $20,900, and $34,900. During the current pay period, these employees earn $980, $1,600, and $1,150, respectively. The applicable SUTA tax rate is 1.2%, and the North Carolina SUTA threshold is $23,500. FUTA tax = $5.88 (correct) SUTA tax = $ 44.76 (wrong)