Shelly's cumulative earnings before this pay period were $7,200 and gross pay for the week is $1,000.Assuming the wage base limit is $7,000,how much of this week's pay is subject to taxes for FUTA and SUTA?
A)$900
B)$200
C)$0
D)$500

Question

Quizplus · Accepted Answer

The wage base limit for FUTA and SUTA is $7,000. Shelly's cumulative earnings before this pay period were $7,200, so she has already reached the wage base limit. Therefore, none of this week's pay is subject to taxes for FUTA and SUTA.

Shelly's Cumulative Earnings Before This Pay Period Were $7,200 and Gross