Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Example 5-8

The Iqbal 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 0.006	=	$1,293.60
SUTA $255,700 0.056	=	14,319.20
Total taxes		$15,612.80

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 employees earnings. Both employees are paid the same amount each week ($900) and have earned $11,500 up to this weeks pay. The unemployment taxes that the company must pay for this weeks pay would be $48. FUTA tax (both over $7,000) = $0.00 SUTA tax ($1,000 0.048) = $48.00 ($500 of each employees pay is under the state taxable limit of $12,000)

During 2018, Shoupe Company was subject to the New Jersey state unemployment tax of 5.1%. The company's taxable wages for FUTA were $93,400 and for SUTA, $194,300. Compute the following; round your answers to the nearest cent.

a. SUTA tax that Shoupe Company would pay to the state of New Jersey $

b. Net FUTA tax for 2018 $

c. Amount of employees' unemployment tax for 2018 (use the employee's tax rate shown in Figure 5.1.) $

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a. SUTA Taxable payroll times net SUTA rate b. FUTA Taxable payroll times FUTA rate c. SUTA taxable wages times employee's rate (use Figure 5-1)

FIGURE 5.1 Summary of State Unemployment Compensation Laws (2017) Warning: The provisions of the state laws are subject to change at any time. State Size of Firm (One employee in specified time and/or size of payroll1) Contributions (On first $7,000 unless otherwise indicated) Benefits (Excluding dependency allowances) Employer Min.-Max. Employee Waiting Period (weeks) Max. per Week Min. per Week Max. Duration (weeks) ALABAMA 20 weeks 0.65%6.8% on first $8,000 none $265 $45 26 ALASKA any time 1.0%5.4% on first $39,800 0.5% on first $39,800 1 370 56 26 ARIZONA 20 weeks 0.04%10.59%** 1 240 60 26 ARKANSAS 10 days 0.4%14.3% on first $12,000** 1 451 81 26 CALIFORNIA* over $100 in any calendar quarter 1.5%6.2% 0.9% on first $110,902 (disability ins) 1 450 40 25 COLORADO any time 0.77%10.10% on first $12,500** 1 568 25 26 CONNECTICUT 20 weeks 1.9%6.8% on first $15,000 none 616 15 26 DELAWARE 20 weeks 0.3%8.2% on first $18,500 none 330 20 26 DISTRICT OF COLUMBIA any time 1.6%7.0% on first $9,000 1 425 50 26 FLORIDA 20 weeks 0.1%5.4% 1 275 32 23 GEORGIA 20 weeks 0.04%8.10% on first $9,500** none 330 44 26 HAWAII any time 0.0%5.6% on first $44,000 0.5% of maximum weekly wages of $1,023.31 not to exceed $5.12 per week (disability ins) 1 569 5 26 IDAHO 20 weeks or $300 in any calendar quarter 0.399%5.4% on first $37,800 1 410 72 26 ILLINOIS 20 weeks 0.55%7.35% on first $12,960 1 449 51 25 INDIANA 20 weeks 0.5%7.4% on first $9,500** 1 390 50 26 IOWA 20 weeks 0.0%8.0% on first $29,300 none 447 64 26 KANSAS 20 weeks 0.2%7.6% on first $14,000** 1 474 117 26 KENTUCKY 20 weeks 0.6%9.75% on first $10,200** none 415 39 26 LOUISIANA 20 weeks 0.10%6.2% on first $7,700** 1 247 10 26 MAINE 20 weeks 0.55%5.46% on first $12,000** 1 410 71 26 MARYLAND any time 0.3%7.5% on first $8,500 none 430 25 26 MASSACHUSETTS 13 weeks 0.73%11.13% on first $15,000** 1 742 31 30 MICHIGAN 20 weeks or $1,000 in calendar year 0.06%10.3% on first $9,000** none 362 81 20 MINNESOTA 20 weeks 0.2%9.1% on first $32,000** 1 683 38 26 MISSISSIPPI 20 weeks 0.2%5.6% on first $14,000 1 235 30 26 MISSOURI 20 weeks 0.0%6.0% on first $13,000** 1 320 48 26 MONTANA Over $1,000 in current or preceding year 0.13%6.3% on first $31,400 1 487 139 28 NEBRASKA 20 weeks 0.0%5.4% on first $9,000** 1 392 30 26 NEVADA $225 in any quarter 0.25%5.4% on first $29,500 none 426 16 26 NEW HAMPSHIRE 20 weeks 0.1%7.0% on first $14,000 none 427 32 20 NEW JERSEY $1,000 in any year 0.5%5.8% on first $33,500** 0.765% (0.24% for disability ins; 0.525% for unempl. comp/family leave/workforce development funds) on first $33,500 1 677 73 26 NEW MEXICO 20 weeks or $450 in any quarter 0.33%5.4% on first $24,300** 1 425 79 26 NEW YORK $300 in any quarter 1.3%9.1% on first $10,900** 0.5%limit $0.60 weekly 1 430 100 26 NORTH CAROLINA 20 weeks 0.06%5.76% on first $23,100** 1 350 46 26 NORTH DAKOTA 20 weeks 0.49%11.43% on first $35,100** 1 633 43 26 OHIO 20 weeks 0.3%8.8% on first $9,000** 1 435 111 26 OKLAHOMA 0.1%5.5% on first $17,700 1 505 16 26 OREGON 20 weeks 1.2%5.4% on first $38,400 1 590 138 26 PENNSYLVANIA 18 weeks or $225 in any quarter 2.6434%11.2616% on first $9,750** 0.07% on total wages 1 573 35 26 PUERTO RICO any time 2.2%5.4% 0.3% on first $9,000 (disability ins) 1 133 7 26 RHODE ISLAND any time 1.2%9.80% on first $22,400** 1.2% on first $68,100 (disability ins) 1 566 43 26 SOUTH CAROLINA any time 0.06%5.46% on first $14,000 1 326 42 26 SOUTH DAKOTA 20 weeks 0.0%10.03% on first $15,000** 1 345 28 26 TENNESSEE 20 weeks 0.01%10.0% on first $8,000 1 275 30 26 TEXAS 20 weeks 0.59%8.21% on first $9,000** 1 493 66 26 UTAH $140 in calendar quarter in current or preceding calendar year 0.2%7.2% on first $33,100 1 509 25 26 VERMONT 20 weeks 1.3%8.4% on first $17,300 1 458 59 26 VIRGIN ISLANDS* any time 1.5%6.0% on first $23,500 1 495 33 26 VIRGINIA 20 weeks 0.13%6.23% on first $8,000 1 378 60 26 WASHINGTON any time 0.13%5.72% on first $45,000** 1 681 158 26 WEST VIRGINIA 20 weeks 1.5%8.5% on first $12,000** 1 424 24 26 WISCONSIN 20 weeks 0.0%12.0% on first $14,000** none 370 54 26 WYOMING $500 in current or preceding calendar year 0.34%8.84% on first $25,400 1 489 34 26

1This is $1,500 in any calendar quarter in current or preceding calendar year unless otherwise specified. *2016 FUTA credit reduction state **Allow voluntary contributions