Since the SUTA rates changes are made at the end of each year, the available 2020 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 5-7

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%	=	$780
SUTA tax $210,000 0.9%	=	1,890
Total 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 $123,400. 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	$fill in the blank 3