Chapter 9, Problem 3MCQ

To determine

Unemployment Tax:

Unemployment tax is that tax which is paid by the employer to the employees on the wages and salaries paid to them. Employer pays these taxes to the central /federal government and state government. Federal Unemployment Tax (FUTA) tax is 6% of the first 7,000 and State Unemployment Tax (SUTA) is 5.4% of first 7,000.

To identify:

Amount of unemployment tax.