NOTE: Problems 7 & 8 Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.

Problem 7: 5 points possible

Michael Mirer worked for Dawson Company for six months this year and earned $11,200. The other six months, he earned $6,900 working for McBride Company (a separate company). The amount of FUTA taxes to be paid on Mirers wages by the two companies is:

• Dawson Company.$____________
• McBride Company.$____________

Problem 8: 5 points possible

Hunter Company had a FUTA taxable payroll of $192,700 for the year. Since the company is located in a state that has a 0.3% FUTA credit reduction due to unpaid loans, determine Hunters FUTA tax liability for the year____________________________________$______________