A contractor has 15 employees with a total annual payroll of $780,000. If the FUTA tax rate is 0.6% on the first $7,000 of each employee's wages, what is the total FUTA tax liability?
Correct Answer
C) $630
FUTA tax = 15 employees × $7,000 × 0.6% = 15 × $42 = $630. FUTA only applies to first $7,000 per employee
Why This Is the Correct Answer
FUTA tax = 15 employees × $7,000 × 0.6% = 15 × $42 = $630. FUTA only applies to first $7,000 per employee
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