Q:

An employee earned $62,200 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?

Accepted Solution

A:
Given that the current futa tax rate is 0.6%, and the suta tax rate is 5.4% and both unemployment taxes are applied to the first $7,000 of an employee's pay.

Therefore, the amount of total unemployment taxes the employee must pay is given by:

0.006(7,000) + 0.054(7,000) = 42 + 378 = $420.