Question

An employee earned $61,300 during the year working for an employer. The Federal Insurance Contributions Act (FICA) tax rate for Social Security is 6.2% of the first $137,700 of employee earnings per calendar year, and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of total unemployment taxes the employee must pay?

Answer 1

The amount of unemployment taxes paid by the employees is equivalent to zero in accordance with the rules made by the IRS authority.

What is IRS?

IRS stands for Internal Revenue Service and is the authority in the US country that monitors and regulates the taxation system of the US.

The unemployment taxes are the impositions put on the income of employees but are required to be paid by the employer. It is merely done to provide funding for workforce agencies of states in the US country. It is determined as per the rate permitted by the IRS authority.

Therefore, the employee needs to pay nothing in respect of the unemployment taxes.

Learn more about the unemployment taxes in the related link:

brainly.com/question/15049474

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Answer 2

Based on tax laws, the total amount of unemployment taxes that the employee will pay is $0.

What amount of unemployment taxes do employees pay?

Unemployment taxes are paid by employers on the basis of the amount they pay their employees.

This means that the employees don't actually pay unemployment taxes, but their salaries allow for the calculation of unemployment taxes.

Find out more on unemployment taxes at brainly.com/question/25954536.

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