Choice "D" is correct. Taxes paid under "FUTA" are deductible by the employer as a business expense for federal income tax purposes.
Choice "b" is incorrect. The employee does not get a deduction since the employee has not paid the tax.
Choice "c" is incorrect. Only the first $7,000 of a covered employee's wages is taxable.
Choice "a" is incorrect. An employer does not have to pay the tax unless the employer has a quarterly payroll of at least $1,500.
