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12. During 2016, Karen Ellison worked for two different employers. Until May, sh

ID: 2614538 • Letter: 1

Question

12. During 2016, Karen Ellison worked for two different employers. Until May, she worked for Central Graphics Design in Junction City, Kansas, and earned $21.500. The state unemployment rate for Central Graphics Design is 4.6% on the first $9,000 dollars. She then changed jobs and worked for Acme Creators in Athens, Washington earning $39,100. The state unemployment rate for Acme Creators is 5.1% on the first $47,300 a. What is the state unemployment tax paid to Kansas? b. What is the state unemployment tax paid to Washington?

Explanation / Answer

a. State Unemployment Tax(SUTA) paid to Kansas

As given, the SUTA rate for Central Graphics Design is 4.6% on first $9000

Also, since Karen Ellison has worked till May that is 5 months, the tax shall be calculated for 5 months

therefore, tax paid to Kansas = $9000 * 4.6% * 5 / 12

= $ 172.5

b. State Unemployment Tax(SUTA) paid to Washington

As given, the SUTA rate for Acme Creators is 5.1% on first $47300.

But since Karen Ellison has earned $39100 (which is lower than $47300), SUTA shall be calculated on the same

Also, since Karen Ellison has worked from June onwards that is 7 months, the tax shall be calculated for 7 months

therefore, tax paid to Washington = $39100 * 5.1% * 7 / 12

= $ 1163.225