Given the earnings of employers in quarter 1 and quarter 2 as follows:
[tex]\begin{center}
\begin{tabular}
{|c|c|c|c|c|}
& Employer 1 & Employer 2 & Employer 3\\[1ex]
Quarter 1 & \$415 & \$8,350 & \$3,550\\
Quarter 2 & \$8,250 & \$16,600 & \$3450
\end{tabular}
\end{center}[/tex]
Given that the state unemployment tax is 5.3% and the federal unemployment tax is 0.8% on the first $7,000.
The state and federal unemployment taxes that the employer must pay for the first quarter is presented in the table below.
[tex]\begin{center}
\begin{tabular}
{|c||c|p{3cm}|p{3cm}|}
& Q1 & State & Federal\\ [2ex]
Employer 1 & \$415 & 5.3\% of \$415 = \$22.00 & 0.8\% of \$415 = \$0.33 \\ [1ex]
Employer 2 & \$8,350 & 5.3\% of \$7,000 = \$371.00 & 0.8\% of \$7,000 = \$56.00 \\ [1ex]
Employer 3 & \$3,550 & 5.3\% of \$3,550 = \$188.15 & 0.8\% of \$3,550 = \$28.40
\end{tabular}
\end{center}[/tex]
Similarly, the state and federal unemployment taxes that the employer must pay for the second quarter is presented in the table below.
[tex]\begin{center} \begin{tabular} {|c||c|p{3cm}|p{3cm}|} & Q2 & State & Federal\\ [2ex] Employer 1 & \$8,250 & 5.3\% of (\$7,000 - \$415) = 0.053 \times \$6,585 = \$349.01 & 0.8\% of (\$7,000 - \$415) = 0.008 \times \$6,585 = \$52.68 \\ [1ex] Employer 2 & \$16,600 & Nil & Nil \\ [1ex] Employer 3 & \$3,450 & 5.3\% of (\$7,000 - \$3,550) = 0.053 \times \$3,450 = \$182.85 & 0.8\% of (\$7,000 - \$3,450) = 0.008 \times \$3,450 = \$27.60 \end{tabular} \end{center}[/tex]
