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Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for RUTA and SUTA Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-8 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 - X 14,319.20 Total taxes $15,612.80 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 employee'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 0.048) - $48.00 ($500 of each employee's pay is under the state taxable limit of $12,000) Peyton Company's payroll for the year is $743,760. or this amount, $464,580 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute: Round your answers to the nearest cent. Total taxes FUTA $215,600 X 0.006 = $ 1,293.60 SUTA $255,700 x 0.056 14,319.20 $15,612.80 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 employee'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 0.048) - $48.00 ($500 of each employee's pay is under the state taxable limit of $12,000) Peyton Company's payroll for the year is $743,760. Of this amount, $454,580 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute: Round your answers to the nearest cent. a. Net FUTA tax b. Net SUTA tax c. Total unemployment taxes Previous Next de

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