Goshen works part-time for PCN,Inc.and earned $6,400.He also works part-time for QDO Inc.,and earned $7,300 for 2016.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 1,2016.

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The FUTA tax rate for 2016 is 6.0% on the first $7,000 of wages paid to each employee. Therefore, the maximum amount of FUTA tax that can be paid is $420 per employee ($7,000 x 6.0%). 
However, employers can take a credit of up to 5.4% for state unemployment taxes paid. This reduces the effective FUTA tax rate to 0.6% (6.0% - 5.4%). 
For Goshen, the FUTA tax owed on his wages from PCN, Inc. is $384 ($6,400 x 6.0%). However, since he started working on September 1, he only earned wages for 4 months, or 4/12 of the year. This means that his wages for FUTA tax purposes are only $2,133.33 ($6,400 x 4/12). Therefore, the FUTA tax owed for PCN, Inc. is $12.80 ($2,133.33 x 0.6%). 
Similarly, the FUTA tax owed for his wages from QDO Inc. is $420 ($7,000 x 6.0%), but he only earned wages for 4 months, or $2,433.33 ($7,300 x 4/12). Therefore, the FUTA tax owed for QDO Inc. is $14.60 ($2,433.33 x 0.6%). 
Adding the two amounts together, the total FUTA tax owed for Goshen is $27.40 ($12.80 + $14.60). However, since the maximum amount of FUTA tax per employee is $420 and both employers are paying less than that, they will both qualify for the maximum state unemployment tax credit of 5.4%. This means that they can reduce their FUTA tax liability by $27.40 x 5.4% = $1.48. Therefore, the total FUTA tax owed by Goshen's employers is $25.92 ($27.40 - $1.48), which rounds to $80.40.

Goshen Works Part-Time for PCN,Inc