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Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employer must pay on an employee's annual wages of $40,000? 1. $2,400 2. $420 3. $42 4. $0, employers do not pay unemployment tax 5. $0, employee's wages exceed the $7,000 maximum

Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employer must pay on an employee's annual wages of $40,000? 1. $2,400 2. $420 3. $42 4. $0, employers do not pay unemployment tax 5. $0, employee's wages exceed the $7,000 maximum

Income Tax Fundamentals 2020
Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter9: Payroll, Estimated Payments, And Retirement Plans
Section: Chapter Questions
Problem 16MCQ
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Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employer must pay on an employee's annual wages of $40,000? 1. $2,400 2. $420 3. $42 4. $0, employers do not pay unemployment tax 5. $0, employee's wages exceed the $7,000 maximum
Transcribed Image Text:Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employer must pay on an employee's annual wages of $40,000? 1. $2,400 2. $420 3. $42 4. $0, employers do not pay unemployment tax 5. $0, employee's wages exceed the $7,000 maximum
Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employee must pay on an their annual wages of $40,000? 1. $2,400 2. $420 3. $42 4. $0, employees do not pay unemployment tax 5. $0, their wages exceed the $7,000 maximum
Transcribed Image Text:Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. What is the total unemployment tax an employee must pay on an their annual wages of $40,000? 1. $2,400 2. $420 3. $42 4. $0, employees do not pay unemployment tax 5. $0, their wages exceed the $7,000 maximum
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