The Current FUTA Tax Rate Is 0

Multiple Choice

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned $8,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

A) $322.00.
B) $434.00.
C) $480.60.
D) $551.80.
E) Zero, since the employee's wages exceed the maximum of $7,000.