Which of the Following Is Not a True Statement

question 27

Multiple Choice

Which of the following is not a true statement?

• A)The current FUTA tax rate is 6.2 percent of the first $7,000 of wages paid during the year to each covered employee.
• B)Most states also impose an unemployment tax on employers.
• C)A credit is allowed against an employer's FUTA tax liability: a maximum of 5.4 percent of the first $7,000 of wages paid during the year to each covered employee.
• D)For an employee paid more than $7,000 during the year, FUTA tax paid by the employer is normally $434.
• E)All of the above are true.

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Definitions:

Law of Diminishing Returns

The Law of Diminishing Returns is an economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Worker Safety

Regulations and practices designed to protect employees from hazards and risks associated with their work environment.

Dust Particles

Tiny solid particles often found in the air, resulting from soil dust, pollen, soot, and other materials.

Textile Company

A company engaged in the production and distribution of yarn, cloth and clothing made from natural fibers like cotton, wool, or synthetic fibers.