Answer to Question #112502 in Accounting for Everlyn

Question

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

Answer 1

3000+2400=5400

$5400\times0.006=32.4$