Question

Based on the payroll information for Romac Electric that follows:
Total gross earnings: $2,462.00
Social Security tax rate: 6.2%
Medicare tax rate 1.45%
State unemployment tax rate 5.4%
Federal unemployment tax rate 0.8%
Find the Federal unemployment Tax Payable

Answer 1

To find the Federal Unemployment Tax Payable, you need to first calculate the total gross earnings multiplied by the federal unemployment tax rate.

Total gross earnings: $2,462.00
Federal unemployment tax rate: 0.8%

Federal Unemployment Tax Payable = Total gross earnings x Federal unemployment tax rate
Federal Unemployment Tax Payable = $2,462.00 x 0.008

Federal Unemployment Tax Payable = $19.696

Therefore, the Federal Unemployment Tax Payable for Romac Electric would be $19.696.