Kim works part-time for Medical Assistants,Inc.and earned $6,385 for 2014.What amount of FUTA tax must her employer remit to the IRS? Assume her employer receives the maximum credit for state unemployment taxes.

Question

Quizplus · Accepted Answer

The FUTA tax rate is 6.0% on the first $7,000 of wages, but employers can receive a credit of up to 5.4% for state unemployment taxes, reducing the effective FUTA rate to 0.6%. Therefore, the FUTA tax is 0.6% of $6,385, which is $38.31.

Kim Works Part-Time for Medical Assistants,Inc