South Carolina Business Management and Law Practice Exam

Question: 1 / 400

For federal unemployment taxes, how are they calculated?

Quarterly

The calculation of federal unemployment taxes, specifically the Federal Unemployment Tax Act (FUTA), is based on the steady accumulation of taxes owed for each employee from the employer's side. The taxes are assessed on a quarterly basis, meaning that employers report and pay the unemployment tax quarterly.

This is important because it allows for a systematic approach to ensuring that funds are adequately collected and available for unemployment benefits. Employers are responsible for paying this tax on a specific percentage of their employees' wages, but they only calculate and remit these taxes every quarter rather than monthly, annually, or bi-weekly.

The quarterly payment schedule aligns with how many businesses manage their cash flow and tax obligations, making it a practical approach for both the government and employers. This is why the answer referring to quarterly calculation is the correct choice in this context.

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Monthly

Annually

Bi-weekly

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