1. What tax is used by the federal government to provide unemployment compensation to individuals who are out of work?Answer: A. FUTA B. SUTA C. Medicare D. Social Security2. When completing Form 1096, the maximum number of types of Form 1099 that may be selected is _____.Answer: A. 1 B. 2 C. 3 D. 43. What is the FUTA tax rate in a state that has a 1.5% credit reduction?Answer: A. 1.2% B. 1.5% C. 2.1% D. 2.7%

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. What tax is used by the federal government to provide unemployment compensation to individuals who are out of work? Answer: A. FUTA B. SUTA C. Medicare D. Social Security

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter13: Accounting For Payroll And Payroll Taxes

Section13.2: Recording Employer Payroll Taxes

Problem 1AYU

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Question

1. What tax is used by the federal government to provide unemployment compensation to individuals who are out of work?

Answer:

FUTA

SUTA

Medicare

D.	Social Security

2. When completing Form 1096, the maximum number of types of Form 1099 that may be selected is _____.

Answer:

3. What is the FUTA tax rate in a state that has a 1.5% credit reduction?

Answer:

1.2%

1.5%

2.1%

2.7%

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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Federal Insurance Contributions Act (FICA)

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