Question

Assume that LMNOP, Inc. had a total annual FUTA Tax due of $5500.00, and a SUTA tax due of $ 4400. $3000 of the total SUTA tax obligation was paid late. What is the amount of the credit against the FUTA tax?

Answer 1

The amount of credit against the FUTA tax is $180.

Step-by-step explanation:

The amount of credit against the FUTA tax can be determined by multiplying the late-paid SUTA tax ($3000) by the FUTA tax rate. The FUTA tax rate is currently 6%, so the amount of credit would be $3000 x 0.06 = $180.