Question

During 2019, Shoupe Company was subject to the New Jersey state unemployment tax of 5.1%. The company's taxable wages for FUTA were $93,400 and for SUTA, $194,300. Compute the following; round your answers to the nearest cent.

a. SUTA tax that Shoupe Company would pay to the state of New Jersey $

b. Net FUTA tax for 2019 $

c. Amount of employees' unemployment tax for 2019 (use the employee's tax rate shown in Figure 5.1.) $

NEW JERSEY

$1,000 in any year

0.5%–5.8% on first $33,700**

0.705% (0.19% for disability ins; 0.515% for unempl. comp/family leave/workforce development funds) on first $33,700

Answer 1

Solution:

A)The company's taxable wages for SUTA = $ 194,300

State unemployment tax rate = 5.1%

SUTA tax that Shoupe company would pay to the state of New jersey = 0.051 x $ 194,300

SUTA tax = $ 9,909

B) The company's taxable wages for FUTA were $ 93,400

FUTA tax rate = 0.5%

Net FUTA tax for 2019 =(0.5/100) x $ 93,400

Net FUTA tax for 2019 =$ 467

C) Employee tax rate = 0.705%

Employee's unemployment tax for 2019 = 0.705/100 x $ 194,300

Employee's unemployment tax for 2019 = $ 1,369.815