Answer:
A. SUTA = $929.07
FUTA = $103.23
B. SUTA = $204.93
FUTA = $22.77
Explanation:
A. First Quarter
52 weeks in a year.
Quarterly therefore there are,
= 52/4
= 13 weeks in a quarter.
In a quarter the employees makes the following,
Larry
= 355 * 13
= $4,615
Curly
= 430 * 13
= $5,590
Moe
= 560 * 13
= $7,280
SUTA Taxes are on first $7,000 so Moe will not pay full 5.4%.
SUTA Taxes
Larry
= 4,615 * 5.4%
= $249.21
Curly
= 5,590 * 5.4%
= $301.86
Moe
= 7,000 * 5.4%
= $378
In total for SUTA,
= 249.21 + 301.86 + 378
= $929.07
For FUTA
Tax is 6% - SUTA so,
= 6% - 5.4%
= 0.6%
Larry
= 4,615 * 0.6%
= $27.69
Curly
= 5,590 * 0.6%
= $33.54
Moe
= 7,000 * 0.6%
= $42
In total for FUTA,
= 27.69 + 33.54 + 42
= $103.23
B. Second Quarter.
Here bear in mind that Moe no longer has to be paid for as he has earned $7,000 in the first quarter.
This leaves just Larry and Curly who have already earned something in the first quarter which should be removed from $7,000 to find out how much they are to pay taxes on.
SUTA Taxes
First $7,000.
Larry has already been paid 4,615 leaving,
= 7,000 - 4,615
= $2,385 is the figure that SUTA and FUTA should be based on.
For Curly
= 7,000 - 5,590
= $1,410 is the figure that SUTA and FUTA should be based on.
Larry SUTA
= 2,385 * 5.4%
= $128.79
Curly SUTA
= 1,410 * 5.4%
= 76.14
Total for SUTA is,
= 128.79 + 76.14
= $204.93
Then FUTA using the same figures.
Larry FUTA
= 2,385 * 0.6%
= $14.31
Curly SUTA
= 1,410 * 0.6%
= $8.46
Total for FUTA is,
= 14.31 + 8.46
= $22.77
