Which statement accurately reflects a difference between FICA and FUTA?

The statement highlighting that FUTA requires compliance with state rules accurately captures a key difference between FICA and FUTA. The Federal Unemployment Tax Act (FUTA) establishes requirements for unemployment insurance funded through employer taxes, and while it sets a framework at the federal level, each state implements its own regulations regarding the administration of these unemployment benefits. This means employers must navigate both federal guidelines and abide by state-specific rules, impacting how unemployment taxes are administered and collected.

In contrast, FICA, which stands for the Federal Insurance Contributions Act, is solely a federal program that provides funding for Social Security and Medicare. FICA taxes are applied uniformly across all employees and their employers, without the requirement for state compliance as is the case with FUTA. Therefore, the distinction that FUTA involves adherence to state regulations is correct and underscores a fundamental difference between these two acts.