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Sally Is an Employer with One Employee, Sara

question 69

Essay

Sally is an employer with one employee, Sara.Sara earned $12,000 from January 1, 2018 through June 30, 2018, and the state unemployment tax rate is 5.4 percent.Calculate the following amount for Sally.
a.FUTA tax after the state tax credit
b.What form should Sally use to report her FUTA tax liability for 2018?


Definitions:

Absorption Cost

A cost accounting method that totals all costs associated with manufacturing a product, including all direct and indirect costs.

Direct Labor Dollars

The total amount of money spent on wages for employees who directly work on manufacturing a product or providing a service.

Traditional Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Multi-Product Organization

A company that produces and sells more than one type of product, often requiring complex management of resources and market strategies.

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