Asked by Arreon Mathews on Jun 02, 2024
Verified
Generally an employer must pay what percent of FUTA tax, which is applied to the first $7000 of the employee's income for a year, if employees' wages total more than $1500 in any quarter.
A) 12.5%
B) 10.5%
C) 6.2%
D) 4.2%
E) 1.8%
FUTA Tax
Federal Unemployment Tax Act tax, which is a payroll tax paid by employers to fund the unemployment benefits system.
Employee's Income
The total earnings, including wages, salaries, bonuses, and other compensation, received by an employee for their work.
Employer
An individual or organization that hires and pays people for their labor or services.
- Understand the criteria and due dates for federal employment tax contributions.
Verified Answer
TM
Tarek MoussaJun 06, 2024
Final Answer :
C
Explanation :
The Federal Unemployment Tax Act (FUTA) tax rate is generally 6.0%, but employers can receive a credit of up to 5.4% for state unemployment taxes, effectively making the FUTA tax rate 0.6%. However, the closest option provided is 6.2%, which seems to be a slight error but is the closest to the actual rate.
Learning Objectives
- Understand the criteria and due dates for federal employment tax contributions.
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