The Principal Objective of the FUTA Tax Is to Provide

question 62

True/False

The principal objective of the FUTA tax is to provide some measure of retirement security.

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Definitions:

Wages Payable

A liability account that records the amounts owed to employees for work that has been performed but not yet paid.

Biweekly Salaries

Compensation paid to employees on a two-week basis, typically resulting in 26 pay periods per year.

Fiscal Period

A specific time frame, such as a month, quarter, or year, used for financial accounting and reporting purposes.

Salary Expense

The total expense incurred by a company to compensate its employees on a salaried basis during a specific period.