Question - calculate suta tax

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Question - Calculate SUTA Tax

For each of the following independent circumstances calculate the SUTA tax owed by the employer. Assume a SUTA tax rate of 3.4% and a taxable earnings threshold of $8,500.

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

1: Hometown Bakery employs three workers who, as of the beginning of the current pay period, have earned $16,200, $7,150, and $4,000. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $1,480, $1,980, and $1,020, respectively.

2: Electronics Outlet employs two workers who, as of the beginning of the current pay period, have earned $8,400 and $7,200. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $3,160 and $2,150, respectively.

3: Delivery Inc. employs 127 workers who, for the current pay period, earn total taxable pay of $347,540. Of this amount, only $30,600 are subject to SUTA tax, as this is the portion of individual employee earnings that does not exceed the $8,500 threshold. Calculate SUTA tax based on these earnings.

Reference no: EM132738388

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