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After how many weeks must federal unemployment tax be paid for an employee?

  1. 7 weeks

  2. 20 weeks

  3. 1 week

  4. 10 weeks

The correct answer is: 20 weeks

Federal unemployment tax (FUTA) is generally due on a quarterly basis, which aligns with the requirement that employers must pay this tax after having paid at least $1,500 in wages during any calendar quarter or if they employed one or more employees for some part of a day in any 20 or more weeks during the current or preceding calendar year. This means that if the criteria are met in a quarter, the employer is responsible for ensuring that the federal unemployment tax is calculated and submitted, typically giving a timeframe that aligns with the 20 weeks mentioned. The 20-week reference indicates the duration over which an employer must monitor their payroll to determine if they are subject to FUTA obligations. This critical window ensures that the employer maintains compliance concerning the taxes owed based on their employment levels throughout the year.