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 5-8 a 1. The labal 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 $15,612.30 2. Kresloff Company has only two employees and is located in a state that has set an unemployment tax for the company of 4.8 percent on the first $12,000 of each dmployee'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) Jordan Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $91,900 and for SUTA, $206,000, Compute the following: round your answers to the nearest cent. ($500 of each employee's pay is under the state taxable limit of $12,000) Jordan Company was subject to the Alaska state unemployment tax of 4.2%. The company's taxable wages for FUTA were $91,900 and for SUTA, $206,000. Compute the following; round your answers to the nearest cent. a. SUTA tax that Jordan Company would pay to the state of Alaska 8,652 b. Net FUTA tax 551.40 c. Amount of employees' unemployment tax (use the employee's tax rate shown in Figure 5.1) Feedback Check My Work a. SUTA taxable payroll times net SUTA rate b. FUTA taxable payroll times net FUTA rate c. SUTA taxable wages times employee's rate (use Figure 5.1) Previous Cho My Work FIGURE 5.1 Summary of State Unemployment Compensation Laws (2020) Warning: The provisions of the state laws are subject to change at any time. Contributions (On first $7,000 unless otherwise indicated) Size of Firm (One employee in specified time and/or sire of payroll) 20 weeks Employee any time State ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA Benefits (Excluding dependency allowances) Waiting Max Min. Max, Period per per Duration (weeks) Weck Week (weeks) none 5265 545 26 1 370 56 26 1 240 60 26 1 451 81 26 1 450 40 0.5% on first $41.500 Employer Min.-Max. 0.659-6.89 on first 58.000 1.09-54% on first $41500 0.059-12.85 0.34 14.24 15%-6.25 20 weeks 10 days over $100 in any calendar quarter 1.0% on first $122.900 (disability ins) 1 352 26 any time none 25 15 20 0.58%-74% on first $13.600** 1.9%-6.8% on first $15.000 0.39-8.2% on first $16.500 1.6%-70% on first $9.000 26 26 20 weeks 20 weeks 631 400 444 none 1 SO 26 any time COLORADO CONNECTICUT DELAWARE DISTRICT OF COLUMBIA FLORIDA GEORGIA HAWAII *** 1 none 23 26 20 weeks 20 weeks 275 365 648 0.196-5.4% 0.049-756% on first $9.500** 0.05-5.6% on first $48,100 32 55 5 26 1 any time 0.5% of maximum weekly wages of $1,119.44 not to exceed $5.60 per week (disability ins) 1 410 72 26 20 sks or $300 0.2559-5.45 on first $41.600