What is the minimum undeposited amount at the end of the quarter that triggers an employer's obligation to deposit FUTA?

The correct answer is $500, which is the minimum undeposited amount that triggers an employer's obligation to deposit Federal Unemployment Tax (FUTA). This threshold is established by the IRS to promote timely and efficient deposit of unemployment taxes.

Employers are required to assess their FUTA tax liability on a quarterly basis, and if the balance due exceeds $500, they must make a deposit; failure to do so can lead to penalties and interest on unpaid amounts. Maintaining awareness of this limit is crucial for employers to remain compliant with federal tax regulations and avoid possible complications with tax authorities.

While other amounts like $200, $1,000, and $700 may be relevant in other tax contexts or discussions, they do not meet the established criteria for FUTA deposits. Only amounts that reach or exceed $500 prompt a mandatory deposit action, hence solidifying $500 as a critical figure in managing FUTA responsibilities.