The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $6,000 of an employee's pay. Assume that an employee earned total wages of $11,100. What is the amount of total unemployment taxes the employer must pay on this employee's wages? A.) $688.20.
B.) $0.00.
C.) $599.40.
D.) $88.80.
E.) $372.00.

E.) $372.00.

Explanation:

FUTA and SUTA are applied on the first $6,000.

FUTA Tax = 0.8% * 6,000

= $48

SUTA Tax = 5.4% * 6,000

= $324

Total Unemployment tax = 324 + 48

= $372

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.