What will Joyce pay at the end of the quarter to her employees?

Question

Joyce Meadows pays her 3 employees $625, $475, and $900 each per week. Calculate what Joyce will pay at the end of the first quarter for (A) state unemployment tax and (B) federal unemployment tax. Assume a state tax rate of 5.6% and a federal tax rate of .8%. Base is $7,000. There are 13 weeks in a quarter.

Answer 1

625 x 13 = 8125

475 x 13 = 6175

900 x 13 =11,700

unemployment tax is only figured on the first $7000 of each employee

for fed

.8% of 7000 = 56.00

+.

.8% of 6175 = 49.40

+

.8% of 7000 =56.00

for state

5.6% of 7000 =392.00

+.

5.6% of 6175 = 345.80

+

5.6% of 7000 = 392.00