The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,500 of an employee's pay. Assume that an employee earned total wages of $9,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?
a. $534.60.
b. $613.80.
c. $79.20.
d. $465.00.
e. $0.00.

Respuesta :

Answer:

d. $465.00

Explanation:

Calculation for the amount of total unemployment taxes

FUTA tax rate $60.00

(0.8%×$7,500)

SUTA tax rate $405.00

(5.4%×$7,500)

Total unemployment taxes $465.00

Therefore the amount of total unemployment taxes the employer must pay on this employee's wages will be $465.00