the FUTA ra
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Discussion Question
Using the Internet for research, when was the last time the FUTA rate was changed and what was the impact on employers? Taking
the 5.4% credit reduction, what was the effective tax rate before and after for employers? What was the maximum amount of tax
for each employee before and after the tax rate change? In your opinion and using the internet for research, do you believe that the
FUTA tax rates for the FUTA tax credit will be changed in the near future? Explain your answer.
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