1- Oliver has two employees who earned the following amounts during 2016: If Oli
ID: 2568678 • Letter: 1
Question
1-
Oliver has two employees who earned the following amounts during 2016:
If Oliver timely pays 5.4 percent for state unemployment tax, what is the amount of his 2016 FUTA after the state tax credit?
a.$112
b.$176
c.$72
d.$0
e.None of these choices are correct.
2-
For 2016, the Social Security portion of the FICA tax is imposed at a rate of:
a.6.2 percent for only the employee.
b.6.2 percent for the employee and 7.65 percent for the employer.
c.6.2 percent for the employee and 6.2 percent for the employer.
d.6.2 percent for only the employer.
e.None of these choices are correc
3-
Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2016 income tax return?
a.$360
b.$0
c.$2,160
d.They will receive a $90 refund.
June $17,000 Eric $ 5,000Explanation / Answer
1.
FUTA tax rate is 0.6% of the first $7,000 per employee.
Therefore,
2016 FUTA after the state tax credit = ($7,000 + $5,000) x 0.6% = $72
Thus,
The correct answer is c.
2.
Social security portion of the FICA tax is imposed on both the employee and the employer at the rate of 6.2% of the wages earned up to $118,500.
Therefore,
For 2016, the Social Security portion of the FICA tax is imposed at a rate of:
c.6.2 percent for the employee and 6.2 percent for the employer.
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