Since the SUTA rates changes are made at the end of each year, the available 2021 rates were used for FUTA and SUTA, Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-8 1. Igbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 x 0.006 = $ 1,293.60 SUTA $255,700 x 0.056 14,319.20 Total taxes $15,612.80 2. Kresloff Company has only two employees and located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each employee's earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this week's pay. The unemployment taxes that the company must pay for this week's pay would be $48. FUTA tax (both over $7,000) = $0.00 SUTA tax ($1,000 x 0.048) = $48.00 ($500 of each employee's pay is under the state taxable limit of $12,000) Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax