Question

For each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer:

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:An employer in The U.S. Virgin Islands employs two individuals, whose taxable earnings to date (prior to the current pay period) are $5,100 and $6,900. During the current pay period, these employees earn $1,650 and $2,800, respectively. The applicable SUTA tax rate is 1.5%, and the U.S. Virgin Islands SUTA threshold is $23,500.

FUTA tax = $
SUTA tax = $

2:An employer in Newark, New Jersey employs three individuals, whose taxable earnings to date (prior to the current pay period) are $26,200, $31,600, and $6,850. During the current pay period, these employees earn $3,600, $2,280, and $1,790, respectively. The applicable SUTA tax rate is 3.4%, and the New Jersey SUTA threshold is $33,500.

FUTA tax = $
SUTA tax = $

3:An employer in Cincinnatti, Ohio employs two individuals, whose taxable earnings to date (prior to the current pay period) are $4,900 and $7,700. During the current pay period, these employees earn $3,000 and $1,500, respectively. The applicable SUTA tax rate is 2.5%, and the Ohio SUTA threshold is $9,000.

FUTA tax = $
SUTA tax = $

4:An employer in Juneau, Alaska employs three individuals, whose taxable earnings to date (prior to the current pay period) are $35,600, $41,300, and $5,200. During the current pay period, these employees earn $3,700, $3,850, and $1,450, respectively. The applicable SUTA tax rate is 2.5%, and the Alaska SUTA threshold is $39,800.

FUTA tax = $
SUTA tax = $

Answer 1

FUTA Tax	$105.00
SUTA Tax	$66.75

Working:

	To date earnings prior to current pay period		Earnings in current pay period	To date earnings including current pay period		Threshold earnings		Taxable Earnings		Tax Rate		Tax Amount
						FUTA	SUTA	FUTA	SUTA	FUTA	SUTA	FUTA	SUTA
Employee 1	5100		1650	6750		7000	23500	1650	1650	6%	1.5%	99.00	24.75
Employee 2	6900		2800	9700		7000	23500	100	2800	6%	1.5%	6.00	42.00
Total	12000		4450	16450				1750	4450			105.00	66.75

2.  

FUTA Tax	$9.00
SUTA Tax	$247.86

Working:

	To date earnings prior to current pay period		Earnings in current pay period	To date earnings including current pay period		Threshold earnings		Taxable Earnings		Tax Rate		Tax Amount
						FUTA	SUTA	FUTA	SUTA	FUTA	SUTA	FUTA	SUTA
Employee 1	26200		3600	29800		7000	33500	0	3600	6%	3.4%	0.00	122.40
Employee 2	31600		2280	33880		7000	33500	0	1900	6%	3.4%	0.00	64.60
Employee 3	6850		1790	8640		7000	33500	150	1790	6%	3.4%	9.00	60.86
Total	64650		7670	72320				150	7290			9.00	247.86

3.  

FUTA Tax	$126.00
SUTA Tax	$107.50

Working:

	To date earnings prior to current pay period		Earnings in current pay period	To date earnings including current pay period		Threshold earnings		Taxable Earnings		Tax Rate		Tax Amount
						FUTA	SUTA	FUTA	SUTA	FUTA	SUTA	FUTA	SUTA
Employee 1	4900		3000	7900		7000	9000	2100	3000	6%	2.5%	126.00	75.00
Employee 2	7700		1500	9200		7000	9000	0	1300	6%	2.5%	0.00	32.50
Total	12600		4500	17100				1650	4300			126.00	107.50

4.

FUTA Tax	$108.00
SUTA Tax	$128.75

Working:

	To date earnings prior to current pay period		Earnings in current pay period	To date earnings including current pay period		Threshold earnings		Taxable Earnings		Tax Rate		Tax Amount
						FUTA	SUTA	FUTA	SUTA	FUTA	SUTA	FUTA	SUTA
Employee 1	35600		3700	39300		7000	39800	0	3700	6%	2.5%	0.00	92.50
Employee 2	41300		3850	45150		7000	39800	0	0	6%	2.5%	0.00	0.00
Employee 3	5200		1450	6650		7000	33500	1800	1450	6%	2.5%	108.00	36.25
Total	82100		9000	91100				1800	5150			108.00	128.75