Question: Since the SUTA rates changes are made at the end of each year, the available 2020 rates were used for FUTA and SUTA. Note: For
Since the SUTA rates changes are made at the end of each year, the available 2020 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.
Jake Gore worked for two different employers. Until May, he worked for Wonderman Construction Company in Kansas City, Kansas, and earned $21,500. The state unemployment rate for Wonderman is 4.6%. He then changed jobs and worked for Buxmont Improvement Company in Mobile, Alabama, and earned $33,100 for the rest of the year. The state unemployment rate for Buxmont 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 Alabama and Kansas.
| a. Wonderman Construction Company | $fill in the blank 1 |
| b. Buxmont Improvement Company |
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