amazon appliance company has three installers. larry earns $355 per
week, curly earns $460 per week, and moe earns $585 per week. the
company's suta rate is 5.4%, and the futa rate is 6.2% minus the suta.
as usual, these taxes are paid on the first $7,000 of each employee's
earnings.
a. how much suta and futa tax does amazon owe for the first quarter of the year?

There are approximately 13 weeks in a quarter of a year, so we can multiply this to find out how much all 3 of them earn in a quarter of a year.





Now find the SUTA by multiplying the rate(5.4%) to these numbers.





Add them up to find the total SUTA tax.



Now subtract the 6.2% rate from the SUTA rate.



So we can multiply 0.8% to the prices for the first quarter of the year.





Add them up to find the total FUTA tax.