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 yearly FUTA tax payment for the business, we first determine the taxable wage base for each employee, which is \( \$ 7000 \). Since there are 75 employees, we calculate the total taxable amount as follows: Total Taxable Wages = Number of Employees × Taxable Wage Base Total Taxable Wages = 75 × \( 7000 = \$ 525,000 \) Next, we apply the after-credit FUTA tax rate of \( 0.6\% \): FUTA Tax Payment = Total Taxable Wages × FUTA Tax Rate FUTA Tax Payment = \( 525,000 × 0.006 = \$ 3,150 \) So, the business's yearly FUTA tax payment is \( \$ 3,150.00 \).