What is the maximum taxable amount of wages per employee for FUTA?

The correct answer, indicating that the maximum taxable amount of wages per employee for the Federal Unemployment Tax Act (FUTA) is $7,000, reflects the established limit for employer contributions to unemployment insurance. Under FUTA, employers pay a tax on the first $7,000 of each employee's wages. This means that for any wages above that threshold, employers do not incur additional FUTA taxes for that employee until their total wages exceed $7,000 in a given tax year.

This cap is significant because it defines how much of an employee's earnings are subject to this particular tax, impacting how employers manage payroll expenses. Given that the figure is set by federal guidelines, it remains consistent across states, allowing for predictable financial planning in relation to unemployment taxes. Understanding this limit is crucial for employers when calculating their tax obligations and ensuring compliance with federal employment tax laws.