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In the first quarter of the year, Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer. How much would the employer's FUTA tax be for the first quarter on Gibson? Round your
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In the first quarter of the year, Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer. How much would the employer's FUTA tax be for the first quarter on Gibson? Round your answer to two decimal places.

User Peter Nguyen
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3 votes

Answer:

Step-by-step explanation:

The FUTA rate is 6.0% (before state tax credits) of what an employee was paid during the quarter but It only applies to the first $7,000 they earned.

So the tax for Mr Gibbons in the first quarter will be 6% of $5400 which is $324.

User Kurt Alfred Kluever
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