Agency And Regulation: Employment Tax

Question 1

Under the Provisions of the Federal Unemployment Tax (FUTA), which of course he following statements is true regarding obligation to file federal unemployment tax return for the year

Answer 1

An employer must file a return if it employs at least one person for some portion of the day during at least 20 weeks in the current or preceding calendar year.

Even if you have no full time employees you must file a FUTA return because it employed temporary and part time workers for more than 20 weeks 

Question 2

Correct regarding the taxes payable under the (FUTA) Federal Unemployment Tax Act

Answer 2

A credit against FUTA tax Liability is provided to an employer who pays state unemployment tax. The credit cannot exceed 5.4% of the first $7,000 of wages