George has 4 employees who earned $75,000, $27,000, $2,100, and $6,200 during 20
ID: 2449773 • Letter: G
Question
George has 4 employees who earned $75,000, $27,000, $2,100, and $6,200 during 2014, respectively. He paid 5.4% for state unemployment tax. How much FUTA tax will George owe for the 4 employees? (Points : 1)
$133.80
$882.40
$321.60
$224.00
$163.70
Interest income
Gain on sale of real estate
Income from a sole proprietor's law practice
Dividends from stock
None of the other choices
Explanation / Answer
1)
FUTA Tax rate = 6% less Credit of SUTA Tax Rate
FUTA Tax rate = 6%-5.4%
FUTA Tax rate = 0.6%
The wage base for FUTA is $7,000
Wage base of 4 employee for FUTA = 7000 + 7000 + 2100 + 6200
Wage base of 4 employee for FUTA = 22300
FUTA tax will George owe for the 4 employees = Wage base of 4 employee for FUTA*FUTA Tax rate
FUTA tax will George owe for the 4 employees = 22300*0.6%
FUTA tax will George owe for the 4 employees = 133.80
2)
Which of the following types of income is subject to the self-employment tax?
Income from a sole proprietor's law practice
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