Question

A characteristic of FUTA is that:

a. It is applicable to spouses of employees but not to any children under age 18.
b. It is imposed solely on the employee.
c. It is imposed on both employer and employee.
d. Compliance requires following guidelines issued by both state and Federal regulatory authorities.
e. None of these choices are correct

Answer 1

FUTA is a payroll tax imposed on employers to fund unemployment compensation and requires adherence to both state and federal guidelines.

Step-by-step explanation:

The characteristic of the Federal Unemployment Tax Act (FUTA) applicable to this question is that it requires compliance following guidelines issued by both state and federal regulatory authorities. FUTA is a payroll tax that is imposed on employers to fund the unemployment compensation system. It is not a tax on employees, nor does it apply specifically to spouses or children under the age of 18. Employers report and pay FUTA tax separately from state unemployment taxes, and the funds collected are allocated to state unemployment agencies and the federal government.