An employer in San Francisco, California, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $3,400, $60,200, and $6,700. During the current pay period, these employees earn $2,200, $3,550, and $3,000, respectively. The applicable SUTA tax rate is 4.4%, and the California SUTA threshold is $7,000.
FUTA tax = $
SUTA tax = $
FUTA refers to the Federal Unemployment Tax Act which states that every employer requires to pay 6% on the wages upto the maximum amount of 7000 per employee per year. This is standard rate and applicable to all industry.
Where as SUTA Refers to the State Unemployment Tax Act which states that when any employee lose their job without their own fault then state will compensate to that employee and for this every employer requires to pay a certain percentage of employee wages. In SUTA each state can decide the range or percentage of payment which is vary from 0.3% to 9% subject to the Maximum Amount of Wages.
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