Question

For each of the following businesses, determine the applicable FUTA tax rate for 2016 based on the locations listed below:

1: A business operating in the U.S. Virgin Islands

FUTA tax rate = %

2: A business operating in Columbus, Ohio

FUTA tax rate = %

3: A business operating in Austin, Texas

FUTA tax rate = %

4: A business operating in Oakland, California

FUTA tax rate = %

5: A business operating in Birmingham, Alabama

FUTA tax rate = %

Answer 1

	FUTA tax rate = %
1: A business operating in the U.S. Virgin Islands	2.40%
2: A business operating in Columbus, Ohio	0.60%
3: A business operating in Austin, Texas	0.60%
4: A business operating in Oakland, California	2.40%
5: A business operating in Birmingham, Alabama	0.60%
The FUTA tax rate is 6.0% of taxable wages and FUTA reduction Credit is 5.4%.The net FUTA tax rate is generally 0.6% (6.0% – 5.4%)	Ohio,Texas,Alabama
For Virgin Islands and California have to pay 1.8% more than the net FUTA .6% because they failed to repay their outstanding federal unemployment insurance (UI) loans as of November 10, 2016.