Person 1 earned $5500 in the first quarter
person 2 earned $7500 in the first quarter
person 3 earned $6500 in the first quarter
FUTA stands for Federal Unemployment Tax Act. It is a tax that is levied on employers. These taxes are funds to be used in administering the
combined federal or state unemployment compensation
program. The FUTA tax rate is 6.2% applied to a maximum cumulative earnings of $7,000.
Person 1 and Person 3 are paying FUTA because their earnings are below 7,000.
Person 1: 5,500 x 6.2% = 341
Person 3: 6,500 x 6.2% = 403
Total FUTA 744
