The Federal Unemployment Tax Act (FUTA) specifies that an employer pay \( 6 \% \) unemployment tax on the first \( \$ 7000 \) of earned income per employee. If the employer pays into a state unemployment insurance program, they will receive a \( 5.4 \% \) credit. The after-credit FUTA tax rate is therefore \( 0.6 \% \). If a business has 75 employees, who each earn more than \( \$ 7000 \) per year in wages, what is the business's yearly FUTA tax payment? FUTA Tax Payment \( =\$[?] \) Round to the nearest hundredth.

To calculate the FUTA tax payment for a business with 75 employees, we first find the taxable amount per employee. Since the FUTA tax applies to the first $7,000 of each employee’s earnings, the calculation is as follows: 1. **Taxable Amount per Employee**: $7,000 2. **After-Credit Tax Rate**: 0.6% (or 0.006 as a decimal) 3. **Total Employees**: 75 Next, we multiply the taxable amount by the tax rate and the number of employees: \[ FUTA \, Tax \, Payment = 75 \times 7,000 \times 0.006 \] Calculating this gives: \[ 75 \times 7,000 = 525,000 \] \[ 525,000 \times 0.006 = 3,150 \] So, the business's yearly FUTA tax payment is \( \$3,150.00 \). FUTA Tax Payment \( =\$3,150.00 \)