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. Example 5-4 Total taxable earnings $49,290.00 Net rate of tax (6.0% - 5.4%) 0.6% $295.74 Amount of net FUTA tax Banerjee Company began its operations in September of the current year. During September, the company paid wages of $23,400. For the last quarter of the year, the taxable wages paid amounte to $64,700. None of the employees was paid more than $7,000 this year. I a. Is Banerjee Company liable for FUTA tax this year? Yes b. If your answer to part a above is "Yes", what is the net FUTA tax for the year? Round your answer to the nearest cent. Check My Work Previous Next