In the original legislation, the federal government tax businesses which are then allocated to state unemployment agencies. It is from these agencies that unemployed workers, who are eligible to claim unemployment insurance, are paid.

The federal law considers a person or a business an employer if of the following two tests applies:

1. Pays wages of $ _____ or more during any calendar quarter in the current or preceding calendar year.
2. Employs one or more persons, on at least some portion of one day, in each of ______ or more calendar weeks during the current or preceding taxable year.

For 2019, the employer’s FUTA tax rate is % ______ of the first $ ______ wages paid to each employee during the calendar year. However, the actual FUTA tax paid is ______ %, since employers are entitled to a credit against their FUTA tax liability for contributions made under approved state unemployment compensation laws. The maximum credit permitted is ______ %.