What is the FUTA rate after the standard state credit, and how does it compare to California's State Unemployment Insurance (SUI) for new employers?
Explanation
FUTA is 6.0 percent on the first $7,000 of each worker's wages under IRC §3301, but an employer in a state that pays its SUI on time takes the 5.4 percent credit under §3302, leaving 0.6 percent, or $42 per worker per year. California's new-employer SUI rate is 3.4 percent on the same first $7,000, with experience-rated employers running roughly 1.5 to 6.2 percent — which is where the stray 1.5 and 6.2 figures in the other options come from. No California unemployment wage base is $14,000, and 6.0 percent is the FUTA rate before the credit, not after.
Law Reference: IRC §3301; IRC §3302; Unemp. Ins. Code §982This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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