R6 M3 - Federal Law & Regulations

Question 1

Which of the following parties is eligible to collect workers’ compensation benefits?

Answer 1

-Minor
-Truck Driver
- Union Employees

Temporary workers are not eligible to collect workers’ compensation benefits.

Question 2

Federal unemployment Tax rate is established state run system of insurance used to provide income for workers that have lost their jobs.

An employer must participate in FUTA if his payroll paid an employee $1,500 in a quarter or he hired a worker for 20 weeks in a year.

Employer can deduct FUTA as a business expense and they can use it as a credit against federal tax due for payment on account of state unemployment tax up to 5.4% of the first $7,000.00

Question 3

Which of the following statements is correct regarding the taxes payable under the Federal Unemployment Tax Act (FUTA)?

A.	The amount is withheld from the wages of all employees.

B.	Credits for this tax are allowed to employers for certain state unemployment taxes paid by the employer.

C.	Liability arises only when wages are actually, not constructively, paid to employees.

D.	The amount is determined as a percentage of all compensation paid to an employee.

Answer 3

Choice “B” is correct. Credits for this tax are allowed to employers for certain state unemployment taxes paid by the employer.

Choice “A” is incorrect. The amount is paid by the employer. It is not withheld from the wages of employees.

Choice “C” is incorrect. Liability does arise when wages are constructively paid to employees.

Choice “D” is incorrect. The amount is based on the first $7,000 paid to each employee per year. It is not based on a percentage of compensation to all employees.