Goshen works part-time for PCN,Inc.and earned $6,400.He also works part-time for QDO Inc. ,and earned $7,300 for 2017.How much FUTA tax are his employers required to remit to the IRS? Assume the employer receives the maximum credit for state unemployment taxes and Goshen started on September 1,2017.

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Quizplus · Accepted Answer

For FUTA tax, the rate is 6.0% on the first $7,000 of each employee's annual wages. However, employers receive a credit of up to 5.4% for state unemployment taxes paid.
Goshen's wages from PCN, Inc. ($6,400) and QDO Inc. ($7,300) total $13,700. Since this amount exceeds $7,000, the FUTA tax liability will be calculated based on $7,000. 
The FUTA tax liability for both employers is:
PCN, Inc.: $6,400 x 0.006 = $38.40
QDO Inc.: $7,000 x 0.006 = $42.00 (since the maximum credit for state unemployment taxes is 5.4%, the employer owes 0.6% of $7,000)
Total FUTA tax liability = $38.40 + $42.00 = $80.40

Goshen Works Part-Time for PCN,Inc