If an employer fails to pay state unemployment taxes on a timely basis, the rate on FUTA taxes will

Question

A. remain the same
B.be lower
C. increase by 100 percent
D. increase

I chose D can someone check my anser

Answer 1

This is a legal question rather than theory. I believe that a state unemployment tax generates a credit against FUTA taxes, but only if the state taxes are paied on a timely basis. So, I think yes, D is correct.

Answer 2

Thanks