Ace the Certified Payroll Pro Test 2025 – Payroll Masters, Your Time to Shine!

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Question: 1 / 400

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

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

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

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.

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

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