Question

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Answer 1

Answer:

Explanation:

The organization is situated in a state with a credit decrease of 1.5 %, in this way we would register its FUTA charge by diminishing the 6% FUTA charge rate by a FUTA credit of just 3.9%, Which is the standard 5.4% credit short the 1.5 % credit decrease  

This would give a compelling FUTA charge pace of 2.1 % for the year  

In states that are not liable to credit decrease, the compelling FUTA charge rate stays 0.6%  

The viable expense pace of FUTA will be 2.1 % for our situation.  

In states that are not liable to credit decrease, the viable FUTA charge rate stays 0.6%  

The powerful duty pace of FUTA will be 2.1 % for our situation.

Taxable payroll = $192,700

FUTA tax liability for the year = 7,000 × 2.1 % = $147 per year which the employer has to deposit