Fema Employment
A question from a textbook on Federal Employment and State Unemployent Taxes?
On a Hourly Employee Payroll Register their is a catagory for Taxable Eearnings that FUTA/SUTA falls into. On payroll sheet one of the Employees gross pay is $1302.90. The problem is stucture as follows: FUTA Tax(6.2%)--Normal FUTA tax credit(5.4%)=0.8%.OR, 6.2%--5.4%=.0.8% FUTA tax rate. So $1,302.90 X 0.8%=$10.42. SUTA tax rate would appear as follows $1,302.90 taxable earnings X 5.4% = Suta tax rate =$70.36. This is all based on a wage limit of $7,000. The equation is as follows: Taxable Earnings, FUTA/SUTA = Gross Current Earnings<FUTA/SUTA A Limit of $7,000. The answer under taxable earnings (FUTA/SUTA) would be $1,302.90. The same as the employees gross pay. How can I begin to figure out this involved problem?
Public Comments
- Gross pay for Federal Unemployment Tax is $7,000 or the actual amount paid, whichever is less. The federal tax is 0.8% if the state is paid and 6.2% if it is not.
