A contractor's quarterly payroll totals $180,000. If the FUTA tax rate is 0.6% on the first $7,000 of each employee's wages and there are 15 employees, what is the maximum FUTA tax liability for the quarter?
Correct Answer
D) $630
FUTA is paid on the first $7,000 per employee annually. Maximum quarterly FUTA = 15 employees × $7,000 × 0.6% = $630 (assuming no employee has exceeded the wage base).
Why This Is the Correct Answer
FUTA is paid on the first $7,000 per employee annually. Maximum quarterly FUTA = 15 employees × $7,000 × 0.6% = $630 (assuming no employee has exceeded the wage base).
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