xyz software employed three different salespeople last year. person 1 earned $4700 in the first quarter…

xyz software employed three different salespeople last year. person 1 earned $4700 in the first quarter, person 2 earned $19,800 in the first quarter, and person 3 earned $6500 in the first quarter. what are the maximum futa deductions for the first quarter?\n\na. $403.00\nb. $1128.40\nc. $1227.60\nd. $291.40

xyz software employed three different salespeople last year. person 1 earned $4700 in the first quarter, person 2 earned $19,800 in the first quarter, and person 3 earned $6500 in the first quarter. what are the maximum futa deductions for the first quarter?\n\na. $403.00\nb. $1128.40\nc. $1227.60\nd. $291.40

Answer

Answer:

A. $403.00

Explanation:

Step1: Identify FUTA wage base

The FUTA wage - base per employee is $7000.

Step2: Determine taxable wages per employee

Person 1: $4700 (less than $7000, so all is taxable). Person 2: $7000 (max taxable as it exceeds $7000). Person 3: $6500 (less than $7000, so all is taxable).

Step3: Calculate total taxable wages

$4700 + 7000+6500=18200$.

Step4: Calculate FUTA deduction

The FUTA tax rate is 6% (0.06). So, $18200\times0.06 = 403$.