3: An employer in the U.S. Virgin Islands, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $1,420 and $32,100. During the current pay period, these employees ean $3,350 and $1,700, respectively. The applicable SUTA tax rate is 4%, and the U.S. Virgin Islands SUTA threshold is $32,500. FUTA tax = $ 286.20 SUTA tax = $ 202.00 4: An employer in Durham, North Carolina, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,000, $22,600, and $35,800. During the current pay period, these employees earn $980, $1,600, and $1,150, respectively. The applicable SUTA tax rate is 1.2%, and the North Carolina SUTA threshold is $26,000. FUTA tax = $ SUTA tax = $ FUTA rate = 0.6% on first 7000 of an Employee's salary SUTA rate = 2.1%. Threshold = $ 16500 Answer 1) FUTA Tax = $ 1450 * 0.6% = $ 8.7 Note: FUTA is not applicable on the other individual as its annual income is more than $ 7000. SUTA Tax = ($ 1450 + $ 2000 ) * 2.1% = $ 72.45 Note: Since , the annual income ($ 6100 + $ 8800 = $ 14900) is less than the threshold , the SUTA tax is applicable on both the individuals. 1) Computing the FUTA and SUTA as follows: Current Period Taxable Income Taxable Income Current Income Remarks Employee 1 6,100 1,450 Employee 2 8,800 2,000 Total taxable income is Total 3,450 below the SUTA threshold limit. SUTA (3,450 x 2.1%) 72.45 FUTA of employee 1 (FUTA is applied on first $7000, so FUTA is not required to be paid for the 2)Computing the FUTA and SUTA as follows: Current Period Taxable Income Taxable Income Current Income Remarks Employee 1 5,500 2,200 Employee 2 12,900 $ 1,950 Total taxable income is Employee 3 $14,200 $2,400 below the SUTA Total 6,550 threshold limit. SUTA (6,550 x 2.1%) 137.55 FUTA (FUTA is applied on first $7000, so FUTA is not required to be paid for the current period 3)Computing the FUTA and SUTA as follows: Current Period Taxable Income Taxable Income Current Income Remarks Employee 1 1,420 3,350 Employee 2 32,100 $ 1,700 Total taxable income is Total 5,050 below the SUTA threshold limit. SUTA (5,050 x 4%) 202 FUTA (employee 1) (6% of 4,770) 286.2 (FUTA is applied on first $7000, so FUTA is not required to be paid for the current period so it is not applicable on employee 2)