Roark Co., which has a taxable payroll of $400,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Roark Co.? O $46,800 O $32,800 $16,000 O $11,200

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Roark Co., which has a taxable payroll of $400,000, is subject to FUTA tax of 6.2% and a state
contribution rate of 5.4%. However, because of stable employment experience, the
company's state rate has been reduced to 2%. What is the total amount of federal and state
unemployment tax for Roark Co.?
O $46,800
O $32,800
O $16,000
$11,200
Transcribed Image Text:Roark Co., which has a taxable payroll of $400,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Roark Co.? O $46,800 O $32,800 O $16,000 $11,200
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