An employer in Cary, NC, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,900, $8,900, and $6,600. During the current pay period, these employees earn $960, $1,070, and $820, respectively. FUTA tax = $ What is the FUTA tax? The wage limit is 7,000 The FUTA rate for this problem is 0.6% (Self employment tax=net self employment income x 15.3% However, for individuals who have net self-employment income exceeding $200,000 (or $250,000 for married filing jointly), there's an additional Medicare Tax of 0.9% on the excess amount.)
An employer in Cary, NC, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,900, $8,900, and $6,600. During the current pay period, these employees earn $960, $1,070, and $820, respectively. FUTA tax = $ What is the FUTA tax? The wage limit is 7,000 The FUTA rate for this problem is 0.6% (Self employment tax=net self employment income x 15.3% However, for individuals who have net self-employment income exceeding $200,000 (or $250,000 for married filing jointly), there's an additional Medicare Tax of 0.9% on the excess amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An employer in Cary, NC, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,900, $8,900, and $6,600. During the current pay period, these employees earn $960, $1,070, and $820, respectively.
FUTA tax = $
What is the FUTA tax?
The wage limit is 7,000
The FUTA rate for this problem is 0.6%
(Self employment tax=net self employment income x 15.3%
However, for individuals who have net self-employment income exceeding $200,000 (or $250,000 for married filing jointly), there's an additional Medicare Tax of 0.9% on the excess amount.)
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