Question

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. Round your answers to two decimal places a. The amount of FUTA tax for the year is $ . b. The amount of SUTA tax for the year is $

Answer 1

Answer: A. $42.00 , B. $5864.60

Explanation:

The amount of FUTA tax for the year is given as,

0.6% of $7000 = $42.00

2. The amount of SUTA tax for the year at 7.1% is

7.1% of $82600 = $5864.60