A new CA employer uses the example UI rate of 3.4 percent and ETT rate of 0.1 percent on the first $7,000 of annual wages per employee. What employer UI plus ETT amount applies to one employee's first $7,000?
Correct Answer
C) $245.
The combined rate is 3.5 percent. Applying it to $7,000 gives $245.
Why This Is the Correct Answer
The combined rate is 3.5 percent. Applying it to $7,000 gives $245.
Why the Other Options Are Wrong
Option A: $238.
$238. is below the supported result for payroll taxes; it likely skips a premium-pay or employer-cost component.
Option B: $241.50.
$241.50. is below the supported result for payroll taxes; it likely skips a premium-pay or employer-cost component.
Option D: $350.
$350. is above the supported result for payroll taxes; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Who controlled combined, who paid rate, where is the Estimating Employer record?
Reference Hint
Study anchor (closed-book): memorize Payroll taxes from CSLB Law and Business Study Guide; California Employment Development. / California Unemployment Insurance Code employer UI and ETT taxable wage base; know the rule or calculation trigger without relying on exam-room lookup.
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