In Florida, what is the current SUTA (State Unemployment Tax Act) wage base limit for unemployment tax calculations?
Correct Answer
C) $7,000 per employee per year
Florida's SUTA wage base is $7,000 per employee per year. This means unemployment taxes are only calculated on the first $7,000 of each employee's annual wages.
Why This Is the Correct Answer
Florida's SUTA (State Unemployment Tax Act) wage base limit is indeed $7,000 per employee per year. This is the maximum amount of wages per employee that are subject to state unemployment tax calculations. Once an employee earns more than $7,000 in a calendar year, no additional SUTA taxes are owed on their remaining wages for that year. This relatively low wage base compared to other states means that for most full-time employees, SUTA taxes are only paid on their first few months of earnings each year.
Why the Other Options Are Wrong
Option A: $8,500 per employee per year
$8,500 per employee per year is incorrect - this exceeds Florida's actual SUTA wage base limit by $1,500 and may be confused with wage bases from other states or federal programs.
Option B: $10,000 per employee per year
$10,000 per employee per year is incorrect - this is significantly higher than Florida's actual wage base and might be confused with other state unemployment programs or different tax calculations.
Memory Technique
Remember 'Lucky 7' - Florida SUTA stops at $7,000, like hitting lucky number 7 and stopping while you're ahead
Reference Hint
Florida Department of Revenue publications on unemployment tax or Chapter 443, Florida Statutes - Employment Security Law
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?