The FUTA Tax Is Imposed on Employees on the First

question 19

True/False

The FUTA tax is imposed on employees on the first $7,000 of annual earnings per employee.

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Definitions:

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, contraction, and trough.

Expansion Phase

Refers to the period in a business cycle or economy where growth and production increase and the overall economic activity rises.

Employment

A formal relationship between an individual and an employer where the individual performs tasks in exchange for compensation, such as salary or wages.

Economy's Ability

Refers to the capacity of an economy to produce goods and services, generate employment, and sustain economic growth.