Question: Since the SUTA rates changes are made at the end of each year, the available 2021 rates were used for FUTA and SUTA. Note: For
Since the SUTA rates changes are made at the end of each year, the available 2021 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.
Ron Valdez 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.
Use Figure 5.1 to determine SUTA caps in Iowa and Kansas.
| a. Rowland Construction Company | $ |
| b. Ford Improvement Company | $ |
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