Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate...
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Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers. Example 5-6 The Iqbal Company of Georgia had a FUTA taxable payroll of $215,600 and a SUTA taxable payroll of $255,700 with a 5.6 percent SUTA tax rate. The company would pay unemployment taxes of: FUTA $215,600 x 0.006 = $1,293.60 SUTA $255,700 x 0.056 = $14,319.20 TOTAL TAXES $15,612.80 Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows: 1. Under SUTA for New Mexico on taxable payroll of $28,000, the contribution rate is 3.9%. 2. Under SUTA for Colorado on taxable payroll of $23,000, the contribution rate is 2.95%. 3. Under SUTA for Utah on taxable payroll of $65,000, the contribution rate is 4.1%. 4. Under FUTA, the taxable payroll is $94,500. Compute the following; round your answers to the nearest cent. a. SUTA taxes paid to New Mexico b. SUTA taxes paid to Colorado c. SUTA taxes paid to Utah d. FUTA taxes paid
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