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Employee SUTA Contributions

Some states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different than an employer's... taxable wages (those under the cap) times the state rate for employees.

Let's investigate an individual that lives in New Jersey whose monthly wages equal $2,470 and whose earnings to date have not exceeded to New Jersey cap of $.

1. 	Description		Calculation
   1.	Looking at the chart, in the Employee column, it provides the employee withholding rate (.675% in New Jersey) and the withholding taxable wage cap.
   2.	Taxable wages		$2,470
   3.	New Jersey employee rate		0.675%
   4.	Employee SUTA tax, rounded to the nearest cent		$16.67

Tackle It

Using the amalgamated State SUTA chart, complete the following.

Note: Round all amounts to the nearest cent.

Mia Hamm lives in Alaska and has wages of $724.00 per week and has not exceeded the SUTA cap of $.

Employee: Hamm, Mia	State: Alaska
Taxable wages	$
SUTA tax	%
Total unemployment tax	$

Feedback

Partially correct

Additional Medal Points

Additional Medal Points

Compute the FUTA and SUTA taxes for both the employer and employee in the scenario below.

Pennsylvania Ice Skaters has a skating camp in Swickley, Pennsylvania. FUTA wages are $16,317.36. Taxable SUTA wages are $19,943.44 on the first $ and experience rating is 9.26%. Michelle Kwan has worked for Pennsylvania Ice Skaters for over 5 years and earns $906.52 per week.

For Pennsylvania Ice Skaters, compute both their total unemployment tax and, if applicable, the amount that would be withheld from Michelle Kwan's weekly paycheck.

Note: Round all amounts to the nearest cent. If the answer is zero, enter "0". And, use the link below to ensure that you have all the necessary unemployment information to complete the problem.

Practice State SUTA Chart

Employer: Pennsylvania Ice Skaters
Net FUTA tax	$
SUTA tax
Total unemployment tax	$

Employee: Michelle Kwan	State: Pennsylvania
Employee unemployment tax	$

Additional Medal Points

Assume instead that Michelle Kwan lives in Hawaii and has wages of $1,100 per week. The amount of SUTA withheld from his check would be? $____

Answer & Explanation Solved by verified expert

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