Question: Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers. During 2015, Jeff Smallwood worked for two different
Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.
During 2015, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,000. The state unemployment rate for Rowland is 4.6%. He then changed jobs and worked for Ford Improvement Company in Topeka, Kansas, and earned $29,500 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.
a. Rowland Construction Company
b. Ford Improvement Company
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