Asked by Jasmine Renteria on May 31, 2024
Verified
Federal unemployment compensation tax (FUTA)
A) Amount is limited, withheld from employee only
B) Amount is limited, withheld from employee and matched by employer
C) Amount is limited, paid by employer only
D) Amount is not limited, withheld from employee only
E) Amount is not limited, withheld from employee and matched by employer
F) Amount is not limited, paid by employer only
FUTA
The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on businesses to fund state workforce agencies.
Employer Only
A term that may refer to expenses or contributions that are solely the responsibility of the employer and not shared with employees.
- Differentiate among various payroll items and their corresponding tax implications.
Verified Answer
MF
Muhammed Furkan ?ahinJun 02, 2024
Final Answer :
C
Explanation :
FUTA is a tax paid by the employer only, and the amount is limited based on wage base limits set by the government. It is not withheld from employee wages. Therefore, the best choice that matches these characteristics is C.
Learning Objectives
- Differentiate among various payroll items and their corresponding tax implications.