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use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Ted Carm

ID: 2749027 • Letter: U

Question

use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Ted Carman worked for Rivertide Country Club and earned $28,500during the year. He also worked part time for Harrison Furniture Company and earned $12,400 during the year. The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000, and the rate for Harrison Furniture Company is 5.1% on the first $8,000. Calculate the FUTA and SUTA taxes paid by the employers on Carman’s earnings.

                                                         FUTA                                    SUTA

a. Rivertide Country Club _________________________ _________________________

b. Harrison Furniture _________________________ _________________________

Explanation / Answer

use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Ted Carman worked for Rivertide Country Club and earned $28,500during the year. He also worked part time for Harrison Furniture Company and earned $12,400 during the year. The SUTA tax rate for Rivertide Country Club is 4.2% on the first $8,000, and the rate for Harrison Furniture Company is 5.1% on the first $8,000. Calculate the FUTA and SUTA taxes paid by the employers on Carman’s earnings.

                                                         FUTA                                    SUTA

a. Rivertide Country Club $42 $336

b. Harrison Furniture $50 $ 338