Prior to December 4, the Fairhaven Corporation's two employees had the following gross pay: Kevin $58,500...

Prior to December 4, the Fairhaven Corporation's two employees had the following gross pay: Kevin $58,500 and Linda $6,600. During the week ended December 10, Kevin earned $2,500 and Linda $800. The Corporation's federal unemployment tax rate is .8% of the first $7,000 earned by each employee and the state unemployment tax rate is 5% of the first $7,000 earned by each employee.

Calculate the Corporation's total unemployment payroll taxes for the week ended December 10.

a. $191.40

b. $23.20

c. $812.00

d. $46.40

Solutions

Expert Solution

Kevin:
Federal unemployment tax	$ -
State unemployment tax	$ -
Total for Kevin	$ -
Linda:
Federal unemployment tax =(7000-6600)*0.8% =	$ 3.20
State unemployment tax = (7000-6600)*5% =	$ 20.00
Total for Kevin	$ 23.20
Total for the corporation	$ 23.20	Option [b]

ekkarill92 answered 1 year ago

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