Choice "A" is correct. FUTA tax is payable by the employer. It is deductible as a business expense. It is not withheld and is not payable on all wages.
Choice "b" is incorrect. The FUTA tax is not a fixed rate on all compensation. It applies only up to a $7,000 ceiling.
Choice "c" is incorrect. The FUTA tax applies only to employers who have a quarterly payroll of at least $1,500 or employ at least one employee at least one day a week for 20 weeks during a year.
Choice "d" is incorrect. The employer pays FUTA tax. The tax is not withheld from employees' wages.
