Kim works part-time for Medical Assistants Inc.,and earned $6,385 for 2016.What amount of FUTA tax must her employer remit to the IRS? Assume her employer receives the maximum credit for state unemployment taxes.

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Quizplus · Accepted Answer

FUTA tax is 0.6% of the first $7,000 of wages paid to each employee. Kim's employer receives the maximum credit for state unemployment taxes, which reduces the FUTA tax rate to 0.6%. Therefore, Kim's employer must remit $38.31 to the IRS.

Kim Works Part-Time for Medical Assistants Inc