If the tax base for calculating unemployment taxes is $7,000 and an employee’s accumulated earnings are $6,500.00, and the employee earns another $1,500.00, the amount of new earnings subject to unemployment tax is $1,500.00.
False
This statement is correct.
The tax base for calculating unemployment taxes is set by the government and represents the maximum amount of wages that are subject to unemployment tax. In this case, the tax base is $7,000, which means that any earnings an employee accumulates up to this amount are subject to unemployment tax.
The statement then goes on to explain that the employee has already accumulated $6,500 in earnings, which means that $500 of their earnings are not subject to unemployment tax. If the employee earns an additional $1,500, then this is the amount that is subject to unemployment tax since it is the difference between their total accumulated earnings ($7,000) and their current earnings ($6,500 + $1,500).
Therefore, the amount of new earnings subject to unemployment tax in this scenario is $1,500.
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