Question

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.)

a. gross FUTA tax $
b. FUTA tax credits (assuming no penalties) $
c. net FUTA tax

Answer 1

a. $510 900\times0.06=30654$

b.$510900\times0.054=27588.6$

c.30654-27588.6=3065.4