In September 2019, Manson Paint Corporation began operations ina state that requires new employers of one or more individuals topay a state unemployment tax of 3.5% of the first $7,000 of wagespaid each employee.
An analysis of the company's payroll for the year shows totalwages paid of $177,610. The salaries of the president and the vicepresident of the company were $20,000 and $15,000, respectively,for the four-month period, but there were no other employees whoreceived wages in excess of $7,000 for the four months. Included inthe total wages were $900 paid to a director who only attendeddirector meetings during the year, $6,300 paid to the factorysuperintendent, and $2,000 in employee contributions to a cafeteriaplan made on a pretax basis-for both federal and state.
In addition to the total wages of $177,610, a payment of $2,430was made to Andersen Accounting Company for an audit it performedon the company's books in December 2019. Compute the following;round your answers to the nearest cent.
| a. Net FUTA tax | $ |
| b. SUTA tax | $ |
