What is the maximum cumulative amount for Unemployment taxable earnings?

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Multiple Choice

What is the maximum cumulative amount for Unemployment taxable earnings?

Explanation:
Unemployment tax is applied only to earnings up to a fixed wage base each year. For FUTA, the wage base is seven thousand dollars per employee per year. This means once an employee earns seven thousand dollars in that year, any additional wages aren’t subject to FUTA tax. The base resets annually, while the actual tax owed is 6% on that base (subject to state credits that can reduce the net rate). So the maximum cumulative amount of earnings that can be taxed for unemployment in a year is seven thousand dollars.

Unemployment tax is applied only to earnings up to a fixed wage base each year. For FUTA, the wage base is seven thousand dollars per employee per year. This means once an employee earns seven thousand dollars in that year, any additional wages aren’t subject to FUTA tax. The base resets annually, while the actual tax owed is 6% on that base (subject to state credits that can reduce the net rate). So the maximum cumulative amount of earnings that can be taxed for unemployment in a year is seven thousand dollars.

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