Choice "B" is correct. An employer's payment under the Federal Unemployment Tax Act (FUTA) is a tax-deductible employer expense.
Choice "c" is incorrect. An employer that does not have a quarterly payroll of at least $1,500 or does not employ at least one person one day a week for 20 weeks in a year does not have to pay.
Choice "d" is incorrect. The federal unemployment tax is paid by the employer and not deducted from the employee's wages.
Choice "a" is incorrect. The federal unemployment tax is paid to the Internal Revenue Service and not to the Social Security Administration.
