In the following problem, use the net FUTA tax rate of 0.6% on the first $7,000

Question

In the following problem, use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Refer to Instruction 5-1. Michael Mirer worked for Dawson Company for six months this year and earned $11,200. The other six months he earned $6,900 working for McBride Company (a separate company). The amount of FUTA taxes to be paid on Mirer's wages by the two companies is: (Round your answers to two decimal places, if necessary.)

In the following problem, use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Explanation / Answer

Solution:

FUTA tax Caluculation:

   FUTA amount * Rate

   = 7,000 * 0.6

= 4,200

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.