Question: can some one help me with this problem? Since the SUTA rates changes are made at the end of each year, the available 2019 rates
Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $20,090. The state unemployment rate for Rowland is 4.6%. He then changed jobs and worked for Ford Improvement Company in Topeka, Kansas, and earned $28,730 for the rest of the year. The state unemployment rate for Ford is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by each company. Round your answers to the nearest cent. Use Figure 5.1 to determine SUTA caps in Iowa and Kansas. a. Rowland Construction Company 966.14 b. Ford Improvement Company 1,507.23 x a. (FUTA taxable payroll times net FUTA rate) + (SUTA taxable payroll times SUTA rate) = Total unemployment taxes b. (FUTA taxable payroll times net FUTA rate) + (SUTA taxable payroll times SUTA rate) = Total unemployment taxes
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