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 $0\mathrm{.}6\%$ was used for the net FUTA tax rate for employers.

Example $5-2$

Robertson Company paid wages of $$515,000$ for the year. Included in the payments was $$250,000$ paid to hourly employees over the $$7,000$ limit for each employee. The only employees who were not paid hourly were the president and vice president who were paid $$125,000$ and $$90,000,$ respectively. Included in the wages was a payment of $$2,000$ to a director who only attended director meetings. Since the FUTA wage limit is $$7,000$ per employee, Robertson Company would pay a FUTA tax on $$62,000[$$$515,000$ $$250,000$ $$201,000($president and vice president over the limit by $$118,000$ and $$83,000,$ respectively$)$ $$2,000($director$$s pay$)].$

The partnership of Keenan and Kludlow paid the following wages during this year:

M$.$ Keenan $($partner$)$ $$85,000$

S$.$ Kludlow $($partner$)75,000$

N$.$ Perry $($supervisor$)53,000$

T$.$ Lee $($factory worker$)34,600$

R$.$ Rolf $($factory worker$)29,800$

D$.$ Broch $($factory worker$)6,900$

S$.$ Ruiz $($bookkeeper$)25,400$

C$.$ Rudolph $($maintenance$)5,100$

In addition, the partnership owed $$200$ to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is $2\mathrm{.}95\%$ on the first $$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

$fill in the blank $1$

b$.$ SUTA tax for this year

$fill in the blank $2$