An employee earned 61600 during the year working for an empl

An employee earned $61,600 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 of employee earnings per calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee\'s pay. What is the amount of total unemployment taxes the employee must pay?

$101.50

$56.00

$378.00

$434.00

$0.00

Solution

The correct answer is E (0)

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Unemployment tax is paid by the employer only, employee is not liable to pay any tax, so correct answer is E.

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Hope this answer your query.

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