Question:

Donner Company began its operations in September of the

current year. During September, the company paid wages

of $23,400. For the last quarter of the year, the taxable

wages paid amounted to $64,700. None of the employees

was paid more than $7,000 this year.

a. Is Donner Company liable for FUTA tax this year?

Explain.

b. What is the net FUTA tax? . . . . . $