Anadama Painters has 15 employees and is located in South Dakota.The total wages for the last year was $389,458.What was the FUTA tax liability for the year? (Assume that all employees have exceeded the annual FUTA wage base of $7,000 per employee and that the FUTA rate is 0.6%. )

Question

Quizplus · Accepted Answer

To calculate the FUTA tax liability, we need to find the taxable wage base and then multiply it by the FUTA tax rate. 
Since all employees have exceeded the annual FUTA wage base of $7,000 per employee, the taxable wage base will be 15 employees x $7,000 = $105,000. 
Then, we can calculate the FUTA tax liability by multiplying the taxable wage base by the FUTA tax rate (0.6% or 0.006):

FUTA tax liability = $105,000 x 0.006 = $630

Therefore, the correct answer is C) $630.

Anadama Painters Has 15 Employees and Is Located in South