Q:

Joyce Meadow pays her three workers $160, $470, and $800, respectively, per week. Calculate what Joyce will pay at the end of the first quarter for (A) state unemployment and (B) federal unemployment. Assume a state rate of 5.6% and a federal rate of .6%. Base is $7,000. A. $950.64; $67.14 B. $655.64; $97.14 C. $755.64; $81.14 D. $850.64; $91.14

Accepted Solution

A:
Answer: D. $850.64; $91.14Step-by-step explanation:Joyce Meadow pays her three workers $160, $470, and $800, respectively, per week. So for 1 quarter, he will pay :[tex]13\times160[/tex] = $2080 [tex]13\times470[/tex] = $6110 [tex]13\times800[/tex] = $10400Given is that the base is $7,000.It implies that the unemployment rate is to be paid on the first $7000 only.Given rates are :State rate of 5.6% and a federal rate of 0.6%.State unemployment = [tex](0.056\times2080)+(0.056\times6110)+(0.056\times7000)[/tex] = $850.64Federal unemployment = [tex](0.006\times2080)+ (0.006\times6110)+ (0.006\times7000)[/tex] Β = $91.14So, the correct option is D.