George has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2016, respectively. He paid 5.4 percent for state unemployment tax. How much FUTA tax will George owe for the four employees?

Question

Quizplus · Accepted Answer

The FUTA tax rate is 6.0 percent, but employers are allowed a credit of up to 5.4 percent for state unemployment taxes paid. George paid 5.4 percent for state unemployment tax, so he will owe 0.6 percent for FUTA tax. 0.6 percent of $110,300 is $661.80.

George Has Four Employees Who Earned $75,000, $27,000, $2,100, and $6,200