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 2016 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 5-2 Assume that in 2017, an employer had charged the wages account for $79,850. Of this amount, $720 will not be paid until the first payday in 2018. Further, the wages actually paid to employees in 2017 in excess of $7,000 each amounted to $29,840. The gross FUTA tax imposed on the employer is computed as follows: Total amount charged to wages during 2017 $79,850.00 Less Wages not to be paid until 2018 $720 Wages paid in excess of $7,000 limit Total taxable wages Rate of tax Amount of gross FUTA tax 29,840 30,560.00 $49,290.00 x 6.0% $2,957.40 Example 5-6 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: 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 2016 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 5-2 Assume that in 2017, an employer had charged the wages account for $79,850. Of this amount, $720 will not be paid until the first payday in 2018. Further, the wages actually paid to employees in 2017 in excess of $7,000 each amounted to $29,840. The gross FUTA tax imposed on the employer is computed as follows: Total amount charged to wages during 2017 $79,850.00 Less Wages not to be paid until 2018 $720 Wages paid in excess of $7,000 limit Total taxable wages Rate of tax Amount of gross FUTA tax 29,840 30,560.00 $49,290.00 x 6.0% $2,957.40 Example 5-6 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