Please choose the correct statement.

Question

Quizplus · Accepted Answer

The statement "An employer must deposit federal unemployment tax for any quarter when the amount for the quarter plus any other amounts from previous quarters during the calendar year exceed $500" is correct as per the Federal Unemployment Tax Act (FUTA) regulations. The remaining options are incorrect as follows: 
B) The federal unemployment tax liability is reported on Form 940, not Form 941.
C) The first $7,000 of an employee's wages is subject to the federal unemployment tax (not $106,800).
D) The federal unemployment tax is paid by the employer and not deducted from the employee's wages.

Please Choose the Correct Statement