Which of the following is the correct SUTA rate?

• A. 4.0%
• B. 5.4%
• C. 6.0%
• D. 7.5%

Answer: (B)

SUTA rate is the percentage of wages that employers pay into the state unemployment insurance system for each employee, up to the state wage base. The rate is set by the state and varies by year and by the employer’s experience rating, so there isn’t a single universal number. In many practice problems, a standard, mid-range rate is assumed for illustrating the calculation rather than the highest or lowest possible rates.

So, the correct choice reflects that typical rate used in the scenario. To compute the SUTA tax, apply that rate to each employee’s wages that are subject to SUTA (up to the wage base) and sum across all employees. The exact value depends on the state’s current rate schedule and the employer’s experience rating, so you’d confirm the precise rate from the state’s unemployment insurance schedule in real life.