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Tyler Hintz
on Nov 15, 2024

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Sam's earnings during the month of June were $1,700. His earnings for the year prior to June were $15,300. Sam's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.6% on the first $7,000. The employer's unemployment payroll tax expense for June is:

A) $10.20.
B) $34.00.
C) $0.
D) $44.20.

State Unemployment

A program providing financial assistance to unemployed workers from their state government.

Federal Unemployment Taxes

Taxes paid by employers to the federal government to fund unemployment benefits for workers who lose their jobs.

Payroll Tax Expense

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes.

  • Identify the importance and regulatory framework of federal and state unemployment taxes in employer payroll obligations.
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Tabitha BruscatoNov 15, 2024
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