What is the maximum state unemployment credit allowed for FUTA purposes?

Question

Quizplus · Accepted Answer

The maximum state unemployment credit allowed for FUTA purposes is 54% if all state unemployment taxes have been paid. This means that employers who have paid all state unemployment taxes and are eligible for the maximum credit would only owe FUTA tax at a rate of 0.6% (6% minus the maximum credit of 5.4%). Option A is incorrect because 90% is not the maximum credit allowed. Option B is incorrect because the maximum credit is 54%, not 60%. Option D is incorrect because there is a maximum credit allowed, although some employers may not be eligible for the maximum credit depending on their state's unemployment tax rates and payments.

What Is the Maximum State Unemployment Credit Allowed for FUTA