CraftWorks employed three different salespeople last year. Person 1 earned

$5500 in the first quarter, person 2 earned $7500 in the first quarter, and

person 3 earned $8000 in the first quarter. What are the maximum FUTA

deductions for the first quarter?

O A. $1229.00

O B. $806.00

O

C. $1302.00

O

D. $1209.00

D) $1,209.00

The maximum FUTA deductions for the first quarter = $1,209.00

Step-by-step explanation:

The Federal Unemployment Tax Act (FUTA) is a tax which employers who pay their employees must pay in order to fund the state unemployment agencies. This tax is only payable on the first $1,500 to $7,000 on each emoloyees wage in a single quarter.

The FUTA current rate is 6.2%

Given that,

Employee 1 earned $5,500 in quarter 1.

Employee 2 earned $7,500 in quarter 1.

Employee 3 earned $8,000 in quarter 1.

Employee 2 and employee 3 would only be charged for their first $7,000 since they earned more than $7,000.

Therefore, the maximum FUTA deductions for the first quarter would be calculated as:

(0.062 * 5,500)+(0.062 * 7,000) + (0.062 * 7,000)

= $341 + $434 + $434

= $1,209

The maximum FUTA deductions for the first quarter = $1,209.00

cheater

step-by-step explanation:

its adding 5.5 each time

step-by-step explanation: