Reference no: EM132570357

In September 2019, Manson Paint Corporation began operations in a state that requires new employers of one or more individuals to pay a state unemployment tax of 3.5% of the first $7,000 of wages paid each employee.

An analysis of the company's payroll for the year shows total wages paid of $161,310. The salaries of the president and the vice president of the company were $18,100 and $15,200, respectively, for the four-month period, but there were no other employees who received wages in excess of $7,000 for the four months. Included in the total wages were $860 paid to a director who only attended director meetings during the year, $6,390 paid to the factory superintendent, and $1,950 in employee contributions to a cafeteria plan made on a pretax basis-for both federal and state.

Question 1: In addition to the total wages of $161,310, a payment of $2,380 was made to Andersen Accounting Company for an audit it performed on the company's books in December 2019. Compute the following; round your answers to the nearest cent.

a. Net FUTA tax$

b. SUTA tax$