Answer:
Total FUTA : $669.6
Step-by-step explanation:
Given the information
- Person 1 earned $3900 in the first quarter
- Person 2 earned $20100 in the first quarter
- Person 3 earned $6900 in the first quarter
As we know, FUTA is short for Federal Unemployment Tax Act, and the FUTA tax rate is 6.2% applied to a maximum cumulative earnings of $7,000.
So in this situation, only person 1 and 2 must pay FUTA tax because ther earning are lower than $7,000.
- Person 1: 3900 x 6.2% = $241.8
- Person 3: 6,900 x 6.2% = $427.8
=> Total FUTA : $669.6
