Virginia Contractor General Practice Test

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Prepare for the Virginia Contractor General Exam with engaging flashcards and multiple choice questions designed to enhance your knowledge and boost your confidence. Get ready to ace the test and advance your contracting career!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the maximum taxable wage base for FUTA?

7,000
9,000
10,000
6,000

The correct answer is: 7,000

The maximum taxable wage base for the Federal Unemployment Tax Act (FUTA) is indeed set at $7,000. This means that employers are required to pay FUTA taxes only on the first $7,000 of earnings paid to an employee during a calendar year. As soon as an employee’s wages exceed this amount, the employer does not have to pay FUTA taxes on the excess earnings. It's important to note that FUTA is separate from state unemployment taxes, which may have different thresholds. Additionally, the taxable wage base is subject to change based on legislative adjustments, but as of the current regulations leading up to 2023, the cap is maintained at $7,000. Understanding this limit helps employers accurately determine their tax liabilities and ensures compliance with federal requirements.