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.

Example 5-7

Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first $10,000) were $210,000 with a 0.9 percent SUTA tax rate. The total unemployment taxes that Shu Company is liable for are:

FUTA tax $130,000 0.6%	=	$780
SUTA tax $210,000 0.9%	=	1,890
Total unemployment taxes		$2,670

Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows:

1. Under SUTA for Massachusetts on taxable payroll of $18,000, the contribution rate is 4%.
2. Under SUTA for New Hampshire on taxable payroll of $24,000, the contribution rate is 6.65%.
3. Under SUTA for Maine on taxable payroll of $79,000, the contribution rate is 2.9%.
4. Under FUTA, the taxable payroll is $103,500.

Compute the following:

a. SUTA taxes paid to Massachusetts
b. SUTA taxes paid to New Hampshire
c. SUTA taxes paid to Maine
d. FUTA taxes paid