Certified Payroll Professional Practice Exam

Which of the following is exempt from being included in FUTA wages?

1. An agricultural employer paying cash wages of $20,000 to farm workers in a calendar quarter

2. An employer who employs less than 10 farm workers during 20 or more weeks in a year

3. A household employer paying cash wages totaling less than $1000 for household employees in a quarter

4. A household employer who pays cash wages totaling $1500 for all household employees in a quarter

The correct answer is: A household employer paying cash wages totaling less than $1000 for household employees in a quarter

The correct answer is C. A household employer paying cash wages totaling less than $1000 for household employees in a quarter is exempt from being included in FUTA wages. This exemption applies to household employers who pay cash wages below the specified threshold. Option A is incorrect because an agricultural employer paying cash wages of $20,000 to farm workers in a calendar quarter needs to include these wages in their FUTA calculations. Option B is incorrect as well because an employer who employs less than 10 farm workers during 20 or more weeks in a year does not automatically qualify for an exemption from FUTA wages. Option D is incorrect because a household employer who pays cash wages totaling $1500 for all household employees in a quarter would typically need to include these wages in their FUTA calculations.