Gabrielle's FUTA tax liability, considering wages paid to three employees totaling $16,500, after state unemployment tax, amounts to $990 at a 6% rate on the FUTA taxable wages.
To calculate the Federal Unemployment Tax Act (FUTA) liability, we need to understand that FUTA tax is imposed on the first $7,000 of wages paid to each employee in a calendar year at a rate of 6%.
Given Gabrielle has paid $8,000, $6,000, and $2,500 to her three employees, the total wages paid are:
Total Wages = $8,000 + $6,000 + $2,500 = $16,500
However, FUTA tax is only applied to the first $7,000 of wages per employee. Let's calculate that limit:
Total Wages subject to FUTA = $7,000 per employee * 3 employees = $21,000
The total wages subject to FUTA tax cannot exceed $21,000, so in this case, the total wages Gabrielle has paid ($16,500) are under the threshold. Therefore, her FUTA tax liability would be calculated as follows:
FUTA tax liability = Total wages subject to FUTA * FUTA tax rate
FUTA tax liability = $16,500 * 0.06 (FUTA tax rate)
FUTA tax liability = $990
Therefore, Gabrielle's FUTA tax liability, after paying the required state unemployment tax, would be $990.