Vince earned $32,876 last year. The state unemployment tax paid by his employer is 5.4% of the first $7,000 earned in a year. How much SUTA tax must Vince’s employer pay for him? How much FUTA tax must Vince’s employer pay?

Answer 1

SUTA tax (5.4% for first $7000)
=7000*0.054
=$378

Equivalent FUTA tax rates are different from state to state because of possible credit reductions.
Same goes for the FUTA tax base.
Assuming the FUTA tax base is $7000, and that there is no credit reduction, the effective FUTA rate is 0.6%, and the FUTA tax the employer must pay is therefore 0.6%*7000=$42.

Do check up on the State and FUTA rules for the last part of the answer.