Angela Rodriguez works as a delivery driver. She earned $7,250 during the first quarter. By the end of the second quarter, her total earnings were $14,870. How much federal unemployment tax will her employer owe for her second quarter earnings if the FUTA rate in her state is 0.08%?

Question

Quizplus · Accepted Answer

Federal Unemployment Tax Act (FUTA) tax is only applied to the first $7,000 of an employee's earnings each year. Since Angela's earnings exceeded $7,000 in the first quarter, her employer owes no FUTA tax for the second quarter.

Angela Rodriguez Works as a Delivery Driver