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%

Question

Tarek Moussa · Accepted Answer

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.

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%

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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%

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Learning Objectives

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Related questions

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%