Answer:
A) $158.40
B) $77.90
C) $42
Explanation:
The question is to determine the tax figures for both the State Unemployment Tax Act (SUTA) for Louisiana and Florida and the net Federal Unemployment Tax Act (FUTA) on Sherm's wages.
A) Amount of SUTA tax the company must pay to Louisiana on Sherm's wages
Out of the $14,190 wages of Sherm for the year, $4,950 was paid in Louisiana
Meaning the State SUTA tax in Louisiana = $4,950 x the tax rate for SUTA in Louisiana = 3.2%
= $4,950 x 3.2% = $158.40
B) Amount of SUTA tax the company must pay to Florida on Sherm's wages
Out of $14,190, $4,950 was paid in Louisiana meaning (14,190 - 4,950) = 9,240 was paid in Florida
However, the taxable wage limit is $7,000
threefore, SUTA in Florida = ($7,000-$4950 x 3.8%
= $77.90
C) Amount of the net FUTA tax on Sherm's wages
Using the same taxable wage limit of $7,000
FUTA tax = $7,000 x 0.6% = $42
