Match each payroll item that follows to the one item (a-f) that best describes its characteristics.
-Federal unemployment compensation tax (FUTA)
A)Amount is limited, withheld from employee only
B)Amount is limited, withheld from employee and matched by employer
C)Amount is limited, paid by employer only
D)Amount is not limited, withheld from employee only
E)Amount is not limited, withheld from employee and matched by employer
F)Amount is not limited, paid by employer only

Question

Match each payroll item that follows to the one item (a-f) that best describes its characteristics.
-Federal unemployment compensation tax  (FUTA)
A)Amount is limited, withheld from employee only
B)Amount is limited, withheld from employee and matched by employer
C)Amount is limited, paid by employer only
D)Amount is not limited, withheld from employee only
E)Amount is not limited, withheld from employee and matched by employer
F)Amount is not limited, paid by employer only

Quizplus · Accepted Answer

FUTA is a tax paid by the employer only, and the amount is limited based on wage base limits set by the government. It is not withheld from employee wages. Therefore, the best choice that matches these characteristics is C.

Match Each Payroll Item That Follows to the One Item