To compute the Federal Unemployment Tax, the credit against the tax, and any credit reductions...
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To compute the Federal Unemployment Tax, the credit against the tax, and any credit reductions that might apply, employers are required to use a floating scale. This scale for SUTA is 6.0% of the first $7,000 of earnings, 5.4% credit (for SUTA taxes paid) = 0.6 percent of net FUTA rate. The experience ratings set in SUTA rate for each employer based on the past employment record. Suppose this process could be erased and a new one could be created. What do you suggest for the process? What do you think would be a better system for determining the employer's SUTA tax rate?
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